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Wheat industry concerned with historic low wheat projections

A wheat industry leader is concerned about what the USDA planting projections for wheat could mean for farmers.

David Schemm, President of the National Association of Wheat Growers, says the USDA Prospective Plantings report puts 2017 wheat acreage at its lowest level since 1919. He says while depressed market prices are a factor, farmers say federal risk protections are also insufficient.

“A couple key things have really fallen down for us. On the ARC side it’s the data that is collected from that. Farmers are not confident in that data and feel RMA (Risk Management Association) data would be better. On the PLC side, when we talk with them it’s the reference price. It’s just simply too low for wheat,” says Schemm.

The report says total wheat acreage this year could be little more than 46 million acres, 8 percent less than last year. Schemm tells Brownfield the low projections mean wheat producers could lose access to competitive markets.

“We we start to not be able to satisfy those markets and they start to turn elsewhere to other possible markets, then many times we can actually lose our share of our market there which obviously contributes to a long down trend in the wheat,” says Schemm.

He says lawmakers need to develop policies in the next Farm Bill to enable wheat to be more competitive with other crops and help American wheat growers maintain market access.

Audio: David Schemm, President, National Association of Wheat Growers