News

US wheat farmers face bleak crop economics as grain oversupply hits

Wheat
Grains, Cereal & Legumes
United States
Market & Price Trends
Published Apr 19, 2024

Tridge summary

U.S. wheat farmers, particularly those growing winter wheat in the Great Plains, are grappling with severe financial difficulties due to a combination of low global wheat prices, high production costs, and the aftermath of three years of drought. This has led to near four-year low prices for U.S. wheat, exacerbated by increased global supply and high costs for essentials like equipment and labor. The USDA anticipates a decrease in farm income for 2024, a reduction in wheat acreage, and a rise in wheat imports. Additionally, there's a reported 7% decrease in winter wheat acreage and a slight 1% increase in spring wheat acreage for the next planting season. Despite wheat's lower profitability, it remains a necessary crop for many farmers due to its role in crop rotation and soil enrichment, highlighting the complex challenges faced by the U.S. wheat farming sector in a competitive global market.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Profit is growing further out of reach for U.S. wheat farmers and many do not expect to break even in 2024 as ample global supply keeps prices around their lowest in nearly four years at the same time costs including equipment and transport remain high. The current state of the U.S. wheat market will hit winter wheat farmers in the Great Plains hard. They may lose money despite having what looks to be their best crop for some time after three years of drought sapped yields andforced farmers to abandon wheat. U.S. wheat prices Wc1have plummeted as cheap supplies from the Black Sea and Europe replenished global stocks of the staple grain, and as plentiful corn harvests worldwide pressure the entire commodity grains complex. U.S. winter wheat will be the first crop to be harvested in a year whenU.S. farm income is expected to plummet, signaling tough times ahead for rural America. Chris Tanner, a farmer in the top wheat growing state of Kansas, said he wouldneed to harvest 10 bushels ...
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