And when future wheat prices jump above $7, farmers start taking note.

According to Bill Spiegel, spokesperson for the Kansas Wheat Commission and the Kansas Association of Wheat Growers, wheat experts are expecting 9 to 9.2 million acres of wheat to be planted this fall. That’s an increase of 400,000 to 600,000 acres when compared with fall 2009.

“If corn and soybean harvest wraps up in a timely fashion, I expect we’ll see more acres double-cropped, or planted right back to wheat,” Spiegel said. “Farmers are able to capitalize on high futures prices for next year’s harvest, but also the Federal Crop Insurance guaranteed price also is very good. So, planting wheat is something farmers will have to consider."

This summer has been a turbulent one for wheat prices and farmers. Cash prices at the elevator during harvest were around $3 to $3.50. With little hope for higher prices in sight, many farmers sold the grain on the scales and took their paychecks.

But news of a severe drought and fire in Russia coupled with reduced yields in Hungary and Romania sent wheat prices climbing. Reports from the United States Department of Agriculture have already shown that demand has continued to increase as supply remains tight.

In a report issued by the USDA Sept. 14, wheat export figures are about 40 percent higher than originally estimated for 2010-11.

Spiegel said many farmers have and should secure futures contracts to lock in the high prices. Not only are futures contracts promising profits next summer, but the Federal Crop Insurance guaranteed price for crop insurance policies on wheat is also good.

But, Spiegel cautions, input costs such as seed and fertilizer have also increased. Crop prices are expected to begin dropping at some point, but input costs likely won’t diminish at the same rate.



Norwich Bulletin