We have heard a lot of speculation on what could happen to crop acreage this year, and wheat is no exception.
Last year, prices were around $4.50 per bushel; now, they are well over $6 dollars. Last year also saw the lowest acreage ever, which could offer a clue to the higher prices, but USDA’s Outlook Board Chairman offers some insight into if there could be a reversal.
According to Mark Jekanowski, “It gets hard to talk about implications for wheat acres given the prices for commodities that have competing uses for that land are also up strongly.”
The decisions can involve more than just price. Jekanowski notes that farmers factor in which crops they are personally more experienced with and which ones their land is most adept at growing.
Related:
Strong purchases from China may lead to more U.S. soybean and corn acreage