STRONG PRICES TEMPERED BY HIGHER INPUT COSTS
SPOKANE, Wash.—Most commodities are experiencing strong crop prices with average to better yields despite the wet spring. However, many producers are concerned about narrowing profit margins given higher input costs. Weakness in the U.S. economy, particularly the housing market, continues to hinder recovery in the nursery and forest products industries.
Throughout the Northwest, potato producers are well into harvest. After a cool, wet start and growing season delays, ideal weather has allowed potatoes to mature at near average yields and quality. Processors’ early interest in contracting potatoes reflects competition for potato acres from substitute crops. Growers are hopeful processors’ interest signals strong demand and sustainable profits throughout the season.