Forest and Nursery

Michael Stolp from Northwest Farm Credit Services spends his life analyzing trends in agriculture. The idea is that Northwest Farm credit services wants their clients to know a little bit about what is in the future as they plan for spring plantings. He’s a very sharp guy who knows his stuff so listen up.

 

Forest Products -- An overall trend of higher prices and increasing demand is evident in the Northwest’s forest products industry, but volatility continues to complicate management decisions. Lumber and panel mills remain cautious about increasing production in the current environment where price run-ups are followed by rapid downward corrections. U.S. fiber consumption is expected to continue growing in 2014, driven primarily by increases in housing starts. Although prices for lumber and panels are expected to increase, high log prices are expected to continue challenging the profit margins of mills located in the Northwest’s coastal markets.

 

Nursery/Greenhouse -- Market conditions remain mostly favorable for the nursery industry. Some nursery producers report that sales to date and orders booked (but not yet delivered) are up significantly from last year. Supply shortages of quality plant material exist, and buyers want assurances product will be available this spring. However, rough weather conditions throughout the East Coast and Midwest have slowed shipments of plant material, leaving most nursery growers with more inventory than projected. Improved weather should help most producers catch up on shipments by the end of April.