Consequences of Higher Input Costs and Wheat Prices for U.S. Wheat Producers
By Mir Ali and Gary Vocke
Outlook Report No. (WHS-09c01) 11 pp,
March 2009
The recent historic rise in farm input costs and wheat prices has had economic effects on the U.S. wheat sector. A cumulative distribution of forecasted production costs for wheat farms shows that current high (but falling) wheat prices will allow a greater share of producers to cover their production costs in 2008 (90 percent) than in 2004 (82 percent), despite higher input costs in 2008. However, if farm-gate prices for wheat continue to fall into 2009, and if prices for inputs do not drop off similarly, many more wheat producers may find themselves unable to cover production costs and the U.S. wheat sector may see further attrition of planted area.
Keywords: wheat, price, inputs, costs of production, profitability, Agricultural Resource Management Survey, ARMS, ERS, USDA
In this report ... Chapters are
in Adobe Acrobat PDF format.
Updated date: March 24, 2009
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