Cost of Production vs Product Value

A very common issue between farmers and the market the past few years has been that production costs have skyrocketed as the product values have continued to decrease. Farmers have to include costs of fertilizers, seed, chemicals, and labor. Most farmers are running into the issue of not making enough money off their crop to pay off their debts in production. The prices are predicted to only rise to six dollars this year. If they have predicted this correctly and the prices of wheat stay low, the prices of gas and diesel will need to drop.

The issue of a lower cost in wheat is related to “…three years of drought that reduced yields, impacted quality, and drove near-record abandonment…” (U.S Wheat Association). The drought impacted many farmers across the world making the quality of the wheat poor, the kernels were small and shriveled. This made the farmers worry about whether or not they would have a successful year. In the county where my family’s farm is located, we also suffered from this drought. Farmers were stressing about their crops not producing as much product and the prices were continuing to drop. Sherman County is known to be a dry area but this drought was making the farming industry more complicated for wheat producers. As they continued to face this issue they were also facing issues with costs in production.

Cost of production is continuously an issue in the agricultural industry. Gas and diesel
prices have been at a high price causing the farmers and ranchers to worry about how they will
afford the low prices of wheat. Fertilizer and seed are also at a higher price than it has been in the
past. Living in a farming community I have seen these farmers stressing about the future if the
prices don’t begin to change. Watching my family and community go through the changes in the
past few years, I have seen the struggles and stress brought upon these farmers. The farming
community has changed and it has made producers have a harder time making a living. My
family has owned this farm for three generations, as it has expanded and changed over the years
so has the agriculture industry.

As a whole the agriculture industry has drastically changed over time. People are beginning to move away from this industry, trying to find new places to get their goods. The wheat produced by farmers in the United States is mostly exported out of the country. Education within schools can also play a very important role in people’s perspectives of agriculture. From a young age, students should be taught about the importance of the agricultural industry and what it can do for you. The industry can not only be a job, but it can be a lifestyle. Most farming areas have a strong sense of community. This career creates relationships and a sense of community that other professions can’t do. In my future career of elementary education, I plan to help students understand from a young age that the agriculture industry is a very important part of our country. It is through education that we can truly make a change in our industry; the youth are the future.

2025 Wheat Scholarship Essay: Bailey Coelsch