Spokane-based agricultural lender Northwest Farm Credit Services says in its latest report that row crops, tree fruit, forest products, and nursery greenhouse businesses are experiencing stable returns during the current summer season. 

The cooperative reports, however, waning returns for grain, feed, and livestock. 

Michael Stolp, Northwest FCS vice president of consumer insights, says moderate spring and summer temperatures, along with regular precipitation, have supported strong crops throughout the territory so far.

“There have been some spikes in temperature throughout the season, but those have mostly been short lived,” says Stolp.  

He says two areas that benefited from the strong spring were the nursery greenhouse industry and the wine vineyard industry, supported by both the solid weather and consumer demand.

The report indicates the outlook for the Northwest apple industry is positive, as a short 2015 apple crop and steady sales support generally profitable prices. Strong old crop sales also are expected to bolster a smaller-than-expected 2016 crop. 

While most crops benefited from the cooler temperatures and greater precipitation, according to the report, one crop that suffered was cherries. A warm spring resulted in one of the earliest harvests on record, but adverse weather during bloom, and rain during harvest, negatively affected the crop’s potential.

“Rains on a ripe cherry can occasionally cause the cherry to split, and then it can’t be sold,” says Stolp. 

He says the hay industry also struggled with the rain, resulting in compromised quality of the newer crop. 

“The hay industry is suffering from an abundance of carry-over inventory, or 2015 production that didn’t sell,” he says. “And the newer crop was rained on, resulting in a lower quality and therefore lower sale price.”

The report also indicated that the wheat industry continues to struggle with global supply, with prices near or below most producers’ break-even point. 

“The good news here in Eastern Washington is that the cooler temperatures and timely rain resulted in strong crop conditions. So the yields in this area will likely be above average this year,” says Stolp. “Above-average yields should help offset some of the challenges associated with low prices.”

Northwest Farm Credit is part of a nationwide group of cooperatives that provides more than $10 billion in financing, as well as other services to farms, ranches, and natural resource businesses in Montana, Idaho, Oregon, Washington and Alaska.