The Idaho Wheat Commission

(Boise, ID) – Idaho’s wheat farmers experienced an overall decrease in yields this year, and there were fewer wheat acres planted. Wheat has been losing acres to other crops in part because wheat prices have been low, while fuel and fertilizer costs have been constantly increasing, forcing farmers to make other planting decisions for their farms.

The Idaho Wheat Commission estimates that about 710,000 acres were planted to winter wheat, down 12% from last year. Spring wheat production is going to be about 480,000 acres, which is up 1% from last year.

World wheat production and ending stocks were lowered again this month while consumption and trade are projected higher. Cost of production is also up according to the latest Food and Agricultural Policy Research Institute (FAPRI) report. Fuel prices have doubled since 2002, and the price paid for fuel for 2006 is more than 10% above 2005 prices. Based on USDA cost of production numbers, fuel costs account for 14 to 21 percent of variable costs.

Soft White prices are hovering right above $4.00 a bushel (Portland) and Hard Red and Hard White is averaging well over $5.00 a bushel (Portland). Soft white winter wheat accounts for 41.9 percent of Idaho’s planted wheat with 530,000 acres planted. Hard red spring wheat plantings increased from last year, accounting for 24.1 percent with 305,000 acres planted.

Hard White wheat bushels were up last year by over 40 percent to approximately 3.7 million bushels. The increase production of Hard White still fell short of demand from Idaho’s domestic customers. Had production been available, Idaho growers likely could have sold eight or nine million bushels of Hard White Wheat this year, double what actual production was according to Blaine Jacobson, executive Director of the Idaho Wheat Commission. “Demand for good quality Hard White Wheat has been terrific this year and will continue to be so into the foreseeable future,” he said.