NWFCS: Profitability Expected For Hay Growers; Not So Much For Grain Growers

As we continue to look at Northwest Farm Credit Service's 2017 Outlook we turn our attending to area field.  Karen Witt, Vice President with NWFCS, said hay inventories have decreased since 2016, but remain above the 10-year average.

Export markets rose in the first four months of 2017, increasing 21 percent. Drought conditions in eastern Montana will tighten supplies and raise prices in the area. Alfalfa prices have remained depressed leaving only slight profit margins for growers. Tight supplies of timothy have strengthened prices.”

Witt addeds the 12 month outlook calls for slightly profitable returns for alfalfa growers and very profitable returns for timothy growers.

Turning to wheat.

2017 saw the lowest wheat acres recorded in USDA history.

"Dry conditions in June followed the wet spring planting season across the Northwest, " Witt said.  "Early planted spring crops fared well, taking advantage of available moisture. Conversely, late-planted spring crops have been challenged by above-average temperatures and drying conditions.”

Witt noted low prices and variable crop conditions are leaving many growers below breakeven.  Join us Wednesday as we wrap up out Northwest Farm Credit Service 2017 Outlook, as we check in with Wines and Cherries.

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