In the News - September 2009
Arkansas wheat acreage could fall to 2006 levels
JONESBORO, Ark. - Arkansas' wheat acreage may fall to near 2006 levels
because of problems associated with this year's higher than normal rainfall and
low commodity prices, according to an agricultural economist for the University
of Arkansas Division of Agriculture.
"Wheat is no different than the row crops battered by this year's unusual
weather conditions," said Scott Stiles, extension economist-risk management with
the U of A Division of Agriculture.
The planting window for wheat opens in October, said Jason Kelley, extension
wheat and feed grains agronomist for the U of A Division of Agriculture. Kelley
was en route to Keiser on Tuesday to observe the corn harvest at the Northeast
Arkansas Research and Extension Center.
Growers were working hard the week of Sept. 28 to capitalize on a rare
stretch of sunshine and dry weather to clear the fields of soybeans, rice and
corn before they can think about winter wheat.
"There are probably six to seven weeks that we can plant wheat," Kelley said.
"Right now, they've got soybeans and rice on their minds, but here in two to
three weeks when we get into the prime planting window and the ground dries out,
they'll be out there."
Commodity prices for soft red winter wheat on the Chicago Board of Trade on
June 1 stood at $7.60 a bushel, but at mid-week closed below $5 before rising to
$5.20 on Sept. 24.
The new crop (2010) basis for wheat shipped out of a White River or
Mississippi River port is roughly 80-cents to $1 a bushel below the Sept. 24
quote, Stiles said.
The economic picture for wheat producers had improved, Stiles said, with
fertilizer prices falling to about half of what they were last year and reducing
production costs.
"That sounds good, but it was offset by the drop in commodity prices," he
added.
As an example, Stiles said a wheat producer renting his land for one-fourth
of the crop must harvest above average yields just to break even.
Commodity prices, the late harvest of other crops planted in a planned
rotation with wheat and a delayed planting window for the next wheat crop will
cause many producers to cut back on the number of acres planted in wheat this
fall, the economist said.
Wheat producers harvested 980,000 acres in 2008, Stiles said, and the acreage
fell by more than half this year to 420,000 acres. Farmers planted 365,000 acres
in wheat in 2006 and harvested 305,000 acres, he said, quoting National
Agricultural Statistics Service data.
Arkansas and Crittenden counties historically have been the state's No. 1 and
No. 2 winter wheat counties in terms of acreage, Kelley said.
Fungus that developed in some parts of the state this year because of wet
conditions also affected the 2009 wheat harvest, reducing yields from 58 bushes
an acre in 2008 to 47 bushels this year, Stiles added.
Egypt and Mexico, two major customers for Arkansas' soft red winter wheat,
can purchase the wheat on world markets below U.S. commodity prices because of
higher yields in other major wheat producing countries.
"It's real competitive in the international markets," Stiles said.
"Bad memories seem to linger and influence planting," Stiles said of the
projected lower wheat production numbers for 2010.
The Cooperative Extension Service is a part of the University of Arkansas
Division of Agriculture and offers its programs to all eligible persons
regardless of race, color, national origin, religion, gender, age, disability,
marital or veteran status, or any other legally protected status, and is an
Affirmative Action/Equal Opportunity Employer.
September 29, 2009
By Larry Fugate
For the U of A Division of Agriculture
Media Contact: Mary Hightower
Extension Communications Specialist
U of A Division of Agriculture
Cooperative Extension Service
(501) 671-2126
mhightower@uaex.edu
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