Texas’ wheat harvest is not a money-making project due to ongoing drought

The latest drought monitor was released today and it shows most of the U.S. improved just slightly over the last week.

Heavy precipitation was received throughout most of the country, specifically in the northwest and the southeast. However, severe drought levels remained in the western Great Plains and throughout the western U.S.

Alaska even showed some short-term abnormal dryness this week. Most of the southwest and Texas Panhandle are also still dry.

A frequent guest on the Market Day Report, Tony St. James, is a broadcaster in the Lonestar State and says one custom harvester is actually getting to harvest wheat, unlike most of the drought-stricken state. However, the outcome is quite shocking coming in at just six bushels per acre.

“You’d think well six bushels at prices that we’re seeing for hard red winter wheat that might pay but the other side of that is with diesel now where it is, that’s not really a money-making project. I would imagine at this point we need to be ten to 15 bushels at least before we’re going to see a break-even for those custom harvesters.”

The area saw a little rain last week and that was the first moisture the crop planted last fall has seen. Some of it is just now starting to emerge.


Texas producers continue to feel drought impact

The U.S. is split in half on drought levels

The majority of U.S. winter wheat is in drought; relief is top priority for USDA

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