Wheat Scoop: Report Shows Fewer Wheat Acres
Kansas farmers planted just 8.6 million acres of wheat last fall, the lowest winter wheat planting acreage since 1957 and an 8% reduction from the fall, 2008 total. The 2010 Wheat Seedings Report, released by the National Ag Statistics Service Jan. 12, also reports that nationally, wheat acreage is down 14% from 2009, to 37.1 million acres. This is the lowest U.S. total since 1913.
These figures are not unexpected. In Kansas, wheat acreage has declined steadily since 1993, when farmers planted 12.1 million acres of winter wheat. Last fall, the trend was exacerbated by a late corn, soybean and grain sorghum harvest, and unusually wet soils - both of which prevented many farmers from getting wheat planted.
This scenario takes place during a time when U.S. wheat farmers are facing increased competition from around the world. Since cash wheat prices peaked at record highs in 2008, global wheat production has reached record-high levels. Competitors battle the U.S. for export trade, and often sell their production at a lower price. As a result, the U.S. has more than 900 million bushels of wheat in storage.
Establishing new international markets and continuing excellent service to current export customers is a priority to the Kansas Wheat Commission, which is a member of several marketing organizations, including the U.S. Wheat Associates and Plains Grains, Inc. Both of these are designed to educate customers about the high-quality and functionality of U.S.-grown wheat, and train overseas millers and buyers to show how our wheat can be a more profitable alternative to that from competing countries.
Meanwhile, the KWC distributes a sizable portion of the Kansas Wheat Assessment to research projects that improve quality characteristics, increase domestic consumption and develop new uses for wheat, important factors when it comes to using up the current surplus of wheat.
"The planted acres story is lost somewhat due to the high carryout total, which is a result of back-to-back years of record wheat production. But the Kansas Wheat Assessment is being put to good use to boost demand for U.S. wheat," says Justin Gilpin, chief executive officer of Kansas Wheat.
In the meantime, the decrease in acres planted to wheat is a disturbing trend. Competition from other crops, including corn and soybeans, has taken acres away from wheat. Many farmers prefer to plant these crops, each of which have benefitted greatly from biotechnology investments, which allow farmers to use production practices that oftentimes are more efficient.
"One of the tools we can use to catch up with the competing grains is biotechnology," says Gilpin, who adds that private industry developments could lead to major biotech improvements in wheat within the next decade. Through the Kansas Wheat Assessment, the Kansas Wheat Commission invests more than $1 million each year in new variety development and improvement of existing wheat varieties, with the end-goal of making wheat a profitable option for Kansas farmers.
