The 12-month outlook calls for “breakeven returns,” according to Northwest Farm Credit Services’ quarterly Market Snapshot report published in early January.
“Supply and demand indicate prices could increase, yet producers are sensitive to continued COVID-19 restrictions in the foodservice industry,” the report states.
Stocks on hand are some of the lowest the industry has seen in the past five years, and demand has been steady and brisk. The report points out that these two factors should indicate a strong price; however, the market has not reacted accordingly.
USDA payments could determine if growers will see positive returns or not. The report lists two programs that could positively impact returns to growers: the Coronavirus Food Assistance Program (CFAP) 2 and another round of the Farmers to Families Food Box Program. Onions were included in prior purchases under this program, which helped bolster prices last summer.
