NWFCS Profitable Returns Expected for Dairy, Cattle

As we start our six-part Northwest Farm Credit Services Quarterly Commodity snapshot series, we take a look at dairy and beef. Northwest Farm Credit Services Vice President Bill Perry says their outlook for cattle suggests slightly profitable returns for cow/calf producers.

"The industry will face higher feed costs associated with rising global grain prices.  If drought conditions persist, producers may reduce herd sizes to ensure they can provide remaining cattle with adequate nutrition.   Stronger cattle prices and rebuilding hay inventories will provide tailwinds to cattle producer profitability."

When it comes to the 12-month outlook for dairy, Perry says their expectation is for profitable returns.

“Increasing feed expenses will create headwinds for producer profits and limit dairy expansion.  Further tightening of dairy herds could promote higher milk prices.   Milk price future contracts have steadily increased since mid-2021," Perry said "Geopolitical tensions have forced greater volatility in dairy milk prices.”

Join us Tuesday as we turn our attention to wheat and hay.

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekmedia.com