Industry Insights

Industry insights

AgWest Farm Credit’s industry research team covers the state of major agricultural commodities in Alaska, Arizona, California, Idaho, Montana, Oregon and Washington. The market updates are based on various sources, and include boots-on-the-ground insights from AgWest’s own lending, appraisal and crop insurance teams across the West. For industry specific information, news and upcoming events, check out our industry pages below.

August update

Producers' sentiment improves, while liquidity pressures remain.

Farmer sentiment improved modestly in July, according to the Purdue University/CME Group Ag Economy Barometer, driven primarily by stronger returns for Midwest producers. However, commodity prices for most Western producers remain persistently low and continue to pressure farm profitability. Producer confidence remains subdued, with fewer than 13% of surveyed farmers reporting they are better off financially than a year ago and only one in four expecting their operation to be in a better financial position a year from now. As a result, working capital reserves continue to erode for many operations, particularly in sectors facing multiple years of weak commodity prices, increasing reliance on borrowing and limiting financial flexibility.