Northwest Farm Credit Service is predicting a positive year for many cattle and dairy producers. NWFCS Vice President Karen Witt said they expect cattle producers to be slightly profitable in 2017.
“A short-term supply shortage drove prices for all classes of cattle higher during the first half of the year. An influx of slaughter cattle later in the summer is expected to drive prices lower than a year ago. Global markets for beef are positive with double-digit year-over-year growth and recent access to China’s $2.5 billion market.
Witt said as far as dairies are concerned; lower milk production and weak prices strained producer profitability in the first quarter of this year.
“However, Northwest dairy farmers are beginning to return to profitability as warmer seasonal weather returns dairies to normal operation. Feed inventory remains abundant despite the harsh winter.”
Witt their outlook calls for a slight return of profitability as milk prices increase. The USDA’s forecast projects an all-milk price between $17.80 and $18.40 per hundredweight in 2017. Join us Tuesday as we take a look at 2017 Hay and Small Grains.
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