A Complex Landscape for Northwest Agriculture

AgWest Farm Credit has released its quarterly Market Snapshot reports covering the state of major agricultural commodities in its northern region of Idaho, Montana, Oregon, Washington and Alaska. AgWest’s industry experts gather market information from various sources to deliver commodity-specific insights. All Market Snapshots are available at AgWestFC.com/industry-insights.

AgWest’s 12-month outlook for specific regional agricultural commodities is summarized below:

Cattle

The outlook for cattle suggests profitable returns for cow-calf producers and slightly profitable returns for cattle feeders. The U.S. cattle industry is experiencing a significant decline, with the smallest herd since 1951, leading to tighter beef supplies and higher prices. Cattle producers are poised to see advantageous pricing and strong returns due to a reduced beef supply and strong domestic and export demand.

Hay

The outlook for hay suggests breakeven returns for alfalfa and Timothy hay. The hay industry is experiencing a decline in domestic demand due to a shrinking cattle population, warmer winter weather and financial challenges in the dairy sector leading to lower hay prices. Hay exports dropped by 22% in 2023, with major international buyers reducing purchases significantly, further depressing hay prices.

Potatoes

The outlook suggests break-even returns for contracted potatoes and slightly unprofitable returns for uncontracted potatoes. A large 2023 Northwest crop has brought uncontracted potato prices to below break-even levels. Some regions are having difficulties securing potato contracts from processors, leading to fewer expected planted acres in 2024.  

Small Grains

The outlook for small grains and pulse crops suggests slightly profitable returns. Global price drops and favorable U.S. weather have further depressed wheat prices. Producers will have to diligently manage elevated operational costs with lower wheat prices.

AgWest is a financial cooperative with approximately $32 billion in total assets that provides financing, crop insurance and related services to farmers, ranchers, agribusinesses, commercial fishermen, timber producers and rural homeowners primarily in seven Western states. AgWest is part of the 108-year-old Farm Credit System – the leading provider of credit to American agriculture. For more information, visit AgWestFC.com.