Farmers can still turn a profit despite high input costs; no relief in sight in regards for wheat
Despite the odds stacked against them, most farmers are still turning a profit.
Input costs like fuel and fertilizer keep going up, but as the war in Ukraine continues to limit global grain supplies, commodity prices for consumers are also up, helping producers with their bottom line. Opportunities and profit margins are increasing for domestic wheat producers with Ukrainian exports stuck at blocked ports.
And there is no short-term end to the low supply-high price wheat situation, but ag leaders say we will not run out of it despite the poor condition of our winter wheat crop. Joe Glauber with the International Food Policy Institute tells us more.
“So you really can’t get winter wheat in the U.S. until the Fall, so that means really next summer where those supplies would come in Spring planting shows very little increase and you’ve got planting delays flooding and other things. So I don’t think until Summer 2023 that we’re going to see much response.”
He says 60 percent of the wheat trading in the world right now was planted last Fall.