As our Northwest Farm Credit Services’ Quarterly Commodity Snapshot series continues, the focus today turns to livestock, the dairy and beef cattle industries. NWFCS Vice President Bill Perry said their 12 month dairy outlook anticipates slightly profitable returns.
“Higher feed cost will weigh on producer profitability. Risk management strategies will become increasingly important as the prospect of direct government assistance fades. However, the cost of risk management is higher and producers must adapt to the new cost structure. The USDA projects modestly lower milk prices in 2021 as Class III prices wane and Class IV prices gain export tailwinds.”
And when it comes to beef?
“Northwest Farm Credit Services’ 12 month outlook for cattle suggests modest profitability centered around risk management strategies and input costs,” Perry noted. “Increasing costs of feed fertilizer and fuel will challenge profitability in the industry.”
Join us Thursday as our attention turns to the tree fruit industry with apples and cherries.
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