Source: Wheat Acres Drop to 100-Year Low
There are only a couple of scenarios where growing wheat makes sense for farmers, according to Arlan Suderman, chief commodities economist for INTL FCStone.
“We have some parts of the country, particularly in the High Plains, where they don’t have a lot of alternatives, but we also have areas where they’ve finally received some rain,” he says. “They’re putting wheat in as a cover crop and will graze it off during the winter and then decide in the spring whether to add fertilizer and save it for grain.”
While there are farmers who raise wheat as a rotational crop, Suderman says it doesn’t pay off economically.
Wheat acres are at a 100-year low, and he expects decreasing acres in the U.S. to continue because of a large number of world stocks on hand. He estimates acres will be down another 4% to 6% in 2018.