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Kansas Wheat presents farmer perspective to foodservice officialsKansas For the first time, agriculture groups had the opportunity to speak directly to all the various U.S. Department of Agriculture groups and individuals that work with the commodity program, and to explain the importance of agriculture to the attendees of the 2008 conference of the American Commodity Distribution Association. The 33rd Annual National Conference, held April 5 to 8 in Kansas City, was cosponsored by the U.S. Department of Agriculture. Dana Peterson, producer policy specialist representing Kansas Wheat presented as one of six panelists for, "The Future of American Agriculture" to the approximately 500 conference attendees, which were made up of school food service directors, processors, marketers, state officials, and USDA officials. The agriculture updates were important to the current and future direction of the USDA commodity program. It was an opportunity to share with USDA officials what is really happening on the farm. The goal was to convey the farmers' message--what they are facing on the farm, and what the immediate future looks like for them. Peterson's presentation gave an overview of the global wheat market, including world grain production, use and trade as well as the export and import situations. Although production, use and trade have been relatively stagnant over the past several years, wheat usage has been greater than world wheat production in six out of the last seven years. The conference attendees heard the top ten factors affecting the global wheat market. These ten factors include: 1. World stocks are at a 30-year low, and stocks-to-use ratio is at a historic low. 2. U.S. export pace is up 54 percent from last year. 3. Import demand explodes, despite record prices. 4. Ukraine, Russia and Argentina impose export restrictions. 5. U.S. winter wheat seedings were below expectations. 6. Global plantings are set to rise. Plantings in European Union and Black Sea region are up. 7. Biofuel production strengthens competing crop prices globally. 8. Ocean freight rates are at record highs. 9. 2008/09 beginning stocks are at "bin bottoms." 10. Dollar exchange rate plummets. Factors affecting U.S. wheat farmers that are closer to home include the rising costs of inputs. Farmers are dealing with production challenges with weather and disease and looking to overcome those challenges through adapting technology. Operating costs on Kansas wheat farms increased 100 percent from 2003 to 2005 and have continued to increase dramatically since then. The farm cost of gas, fuel and oil increased 56 percent between 2004 and 2006. Fertilizer's main raw material is natural gas, so as fuel prices continue to increase, fertilizer prices are also affected. Peterson also included a short description of a family farmer and KAWG board member David Schemm to demonstrate a full-time Kansas wheat farm to those in the audience with limited or no history on a farm. 4/21/08 Date: 4/17/08 Advertisement
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