Wheat Farmers Reap Golden Crop Strong Grain Prices Offset Mediocre Statewide Harvest
It’s not the biggest wheat crop ever, but certainly is one of the most lucrative.
Inland Northwest wheat growers are reaping the reward of high demand for their crop and low supplies in storage, turning a mediocre statewide harvest into a money machine.
Not since 1981, when the Washington wheat crop was worth $659 million, have farmers had such an opportunity to cash in on their efforts. Prices on some days are higher than they’ve been in 20 years.
At Thursday’s price to farmers of about $4.50 per bushel for No. 1 soft white wheat - the predominant variety grown in the region - the Washington crop would be worth about $650 million. The Idaho crop would reap $440 million.
That’s based on yield and production figures released this week by the Washington and Idaho Agricultural Statistics Service. The calculations, however, assume the entire crop is sold with no deductions for poor quality, dirt, chaff or sprouting.
They also assume that farmers are willing to sell at current prices, which are $1 above what many say they need to break even. Some are holding out, expecting loftier price spikes in the future.
“If they’re marketing the crop right now, they’re already hitting higher prices than their dad ever did,” said Almira, Wash., farmer Dan McKay, who chairs the marketing committee for the Washington Association of Wheat Growers. “Whose to say it can’t go higher?”
With wheat prices padding farmers’ pocketbooks, the 1995 harvest ends on a high note. Many producers were struck by rain and piercing hail right before harvest.
About 90 percent of the crop is in, the statistics service said, and some farmers west of Spokane have begun to seed their 1996 winter wheat.
McKay says prices are reminiscent of 1974, when wheat soared to $6.40 a bushel. But prices fluctuated wildly that year, falling at one point to $3.20 - a roller-coaster that farmers in 1995 have not had to ride.
Washington wheat yields are expected to average 55.6 bushels, up 2.9 bushels from last year. At that rate, total production would be 144.3 million bushels on 2.6 million acres. Production would be 8 percent higher than last year, but far below the all-time high of 178 million in 1993.
Idaho farmers are expected to yield 73.4 bushels, up 2.4 bushels from 1994, on 1.33 million acres. Total production would be 97.65 million bushels, well below the 1993 record of 110.4 million bushels.
, DataTimes