It is a well known fact that wheat is a massive and highly sought after commodity in both the United States and around the globe. However, in recent years the wheat industry has come under fire due to many factors. It is very hard for the American Farmer to raise a crop when the difference between the input costs and profits that are made at the end of each year are almost equal.
Fertilizer and herbicide prices continue to raise as the price per bushel of wheat proceeds to fall. In 2021, fertilizer costs amounted to approximately 15 percent of the United States cash values being spent in the agriculture industry. Some accounts have recorded prices that are up 300% since then. This is partially due to the increase in fares of fertilizer producing ingredients like phosphate and nitrogen.
Yields are also often influenced by weather conditions, and as drought severely affects large portions of the U.S., especially in the Midwest, it is difficult to compensate and produce high yielding fields. According to the USDA, United States’ wheat stocks for the 2023-24 growing season are projected to reach 556 million bushels, which would be the lowest recorded number since 2007-08 when our country was in the midst of a financial crisis. While wheat can be grown in a variety of different soil types and conditions, it relies on a high water content to produce a satisfactory seed volume. In another report from the United States Department of Agriculture, the top wheat producing state of Kansas had only 19 percent of total acreage labeled as good, or excellent condition over the previous year. This problem is not only affecting our country, but other nations as well. Natural water shortages in our neighboring land of Canada have caused suffering within the industry, and Argentina is facing similar problems. The forecast for global wheat production is expected to fall almost 4 metric million tons, as smaller numbers are coming from places like Kazakhstan, Australia, and Brazil as well.
As we continue to deal with these worrying drawbacks, one thing is for certain. American farmers have and will continue to fight for their lifestyle and the crops that support it. Whether it was the Dust Bowl in the 1930s, or other economic recessions that have occurred, wheat and other commodities have persisted to stay in American soil. Groups like the Oregon Wheat Foundation are truly representing the way of life we choose to live, and are providing producers with new, innovative ways to keep it that way.
Our 2024 Oregon Wheat Scholarship awardees each submit an essay with their scholarship application. Learn more about the scholarship program at https://oregonwheatfoundation.org/scholarship-program/
