AgWest Introduces Monthly Report

AgWest Farm Credit is introducing a new monthly market report covering the state of major agricultural commodities in Alaska, Arizona, California, Idaho, Montana, Oregon and Washington. AgWest’s industry and research teams gather market updates from various sources, including boots-on-the-ground insights from AgWest’s lending, appraisal and crop insurance teams.

Cattle

The U.S. cattle industry remains optimistic about continued growth through 2026. Producers are exercising caution in expanding their herds, balancing strong market prices and improved feed availability against the backdrop of labor shortages, high interest rates and market volatility.

Dairy

Western milk production fell due to smaller herds and ongoing heat may further suppress output. Better milk prices and lower feed costs are enhancing the industry’s financial outlook, fostering greater optimism for the latter half of 2024.

Hay

Hay prices in the Western states have remained stable, with improvements in domestic and export demand. Increasing hay exports are met with ongoing pricing concerns as exchange rates are making U.S. hay imports more costly to some international buyers and negating the benefits of lower prices.

Potatoes

U.S. potato storage is at its highest in five years, with manageable production expected in 2024 due to Idaho’s weather conditions. Eastern Idaho farmers avoided a water crisis with a recent settlement, yet they face an October deadline to establish a sustainable water rights agreement.

Wheat

Wheat growers are navigating a challenging year with low prices, eroding basis and storage concerns. Market sentiment remains poor even with a more bullish international outlook.