Wheat Letter Blog Archive - Page 49 of 104

Historic Freeze, Severe Dryness Challenge U.S. Winter Wheat Crop

Winter wheat farmers in several states have not had an easy winter. All eyes are on Kansas, Nebraska and Colorado as “a perfect storm” of a historic freeze combined with severe dryness threatens new crop yield potential in the heart of the country’s breadbasket.

Producers in the Great Plains have seen sustained temperatures below 10° Fahrenheit (F), low enough to cause serious concern about the crop’s ability to survive dormancy. Typically, snow cover and adequate soil moisture would help insulate the dormant crop, but this year has been anything but typical as severe to exceptional drought conditions persist from western Kansas into western Nebraska and eastern Colorado. Unlike lighter freeze damage, from which the wheat can bounce back under the right conditions, this year’s freeze event has the potential for “winterkill” in some regions, and ultimately challenge the final production volume.

Historic Freeze, Severe Dryness Challenge U.S. Winter Wheat Crop

Source: Weather.com

“Today, there’s no way to tell the extent of the damage, but by mid-March when fields start to green up, we will know what we are facing,” said Justin Gilpin, CEO of the Kansas Wheat Commission.

Here is a look at the three states most concerned about new hard red winter and hard white crop conditions.

Kansas

According to USDA, as of late January 2021, the state’s topsoil moisture supplies were 21% very short and 34% short, 15 points worse than this time last year.

“We got the wheat up and growing, but do not have enough moisture to set brace roots,” said Gary Millershaski, a Lakin, Kans., farmer and a U.S. Wheat Associates (USW) director. “We had a couple of inches of snow, but temperatures of 19 degrees F below zero tell me half the tillers might not make it.”

Though conditions are drier and colder in western Kansas, wheat farmers in the region were able to get the crop planted on time, which will help its ability to fight low temperatures, said Romulo Lollato, Wheat and Forage Specialist at Kansas State University. Later-planted wheat will have a harder time fighting the freeze.

“Right now, our main concern across the region is winterkill which could limit harvest potential,” said Lollato.

Nebraska

“In Nebraska, our concerns are poor emergence, weak stands and drought conditions,” said Royce Schaneman, Executive Director of the Nebraska Wheat Board. According to USDA, just 30% of the state’s wheat is rated good to excellent, down from 70% good to excellent this time last year due to substantial drought conditions.

The wheat is extremely susceptible to sustained freezing temperatures as parched soil and limited snow cover offer little protection.

“Moving forward, we need a good warm-up in spring, no late freezing and many timely rains,” said Schaneman. “If we have the perfect growing conditions throughout the season, we can expect an average harvest. We are off to such a poor start so given the current outlook, this could be a tough year.”

Colorado

“Winterkill has now become a major concern with last week’s extreme temperatures, down to 15 F to 25 F below zero,” said Brad Erker, Executive Director of the Colorado Association of Wheat Growers.

Looking ahead, Erker said the best weather for producers in Colorado would be a “big, wet snow” by the first week of March.

“Moisture to come could heal the situation but the timing of the moisture will be a big factor,” said Erker. “If we go too long into the growing season without moisture, we will start losing potential. We are in worse shape now than this time last year, and 2020 ended up being a very small crop for us. We can’t wait until the end of April for moisture or we will lose a lot of acres.”

By Claire Hutchins, USW Market Analyst

Header photo Copyright Leonard Schock.

February 18, 2021/by actualize

Trade Policy

Farm to Fork and the Agricultural Innovation Agenda

By Ben Conner, Partner, DTB Associates, LLP

The year 2020 will be known for many things, but one overlooked development that could have far-reaching consequences for global food security and sustainability was the juxtaposition of the European Commission’s Farm to Fork (F2F) strategy and the USDA’s Agriculture Innovation Agenda (AIA) at the beginning of that year.

Both plans aim to reduce agriculture’s environmental footprint, but the approaches diverge dramatically. Some key goals of the F2F strategy are:

Reduce the use of pesticides by 50%;
Reduce fertilizer use by 20%;
Reduce sales of antimicrobials in agriculture by 50%;
Expand organic farming to 25% of total farmland;
Mandatory labeling covering nutrition, climate, environmental, and social aspects of food;
Global transition towards sustainable food systems.

These are not necessarily bad goals; one would be hard-pressed to find a U.S. farmer who enjoys having to buy and apply inputs. But without game-changing innovations, the ripple effects could be catastrophic.

A USDA report projects that Farm to Fork implementation would lead to a 12% and 16% drop in EU production and farm income, respectively, if the EU alone meets these goals. In contrast, the United States would see exports increase and farm income rise. EU policymakers clearly understand that F2F regulations could damage its farm sector if farmers in more competitive jurisdictions are not subject to the same standards for exports into the single market.

The Commission explicitly seeks a global transition towards what it calls sustainable agri-food systems while promising to use the tools in its trade policy arsenal to make that happen. If these ambitions are realized on a global scale, the USDA report estimates that F2F would reduce global production by 11%, raise food prices by nearly 90%, cost over US$1 trillion in global GDP, and 185 million more people would be food insecure.

Implementation will be critical to watch. World Trade Organization (WTO) rules relating to technical barriers to trade, sanitary and phytosanitary measures, and conservation of natural resources could be applicable and should limit the EU’s scope for action on imports. However, the EU has a long track record of ignoring WTO commitments (though it is not alone), often culminating in trade disputes. If the EU’s trading partners do not work to ensure that F2F measures comply with WTO rules, farmers and companies in other countries could see these measures become de facto global standards.

A Different Approach

USDA has taken a different approach through the AIA by prioritizing farmers’ needs – i.e., the ones simultaneously working with and fighting nature to produce food – while embracing technological innovation as a key component of reducing agriculture’s environmental footprint. The Commission claims that innovation will be a part of the F2F strategy and promises an investment of €10 billion for research, but its approach appears to be driven by high-level input reduction targets rather than environmental outcomes, food security, and farmer profitability.

The AIA prioritizes both public and private sector research, embraces new technologies, and envisions metrics and scorecards for productivity and conservation outcomes. It does not aspire to regulate everything in agriculture “from farm to fork,” but it does seek to harness technology and ingenuity to reduce agriculture’s environmental footprint. These visions do not have to conflict; sustainable intensification can coexist alongside agroecological models and inform each other. Unfortunately, Brussels seems to have included innovation in Farm to Fork as an afterthought while it seeks to impose unrealistic and even harmful standards on farmers who rely on access to its market.

February 18, 2021/by actualize

Public Wheat Breeding Programs Serving Northern Plains Producers

Throughout 2021, the U.S. Wheat Associates (USW) Wheat Letter is featuring the many stories of the people, processes and passions that go into producing and delivering high-quality U.S. wheat to the world. Our focus will be on quality that starts with dedicated private and public wheat breeding programs, is fostered by hard-working farm families, is maintained by grain handlers and observed in hundreds of wholesome, nutritious wheat foods.

The journey of wheat begins in public and commercial breeding programs that maintain the process of improving varieties for farmers to grow, move into the supply chain and, ultimately, end up in food products around the world.

Public university breeding programs develop an estimated 65% of all U.S. wheat varieties, funded in part by farmers through state wheat commissions, royalties from the sale of public varieties, and USDA programs such as the Agricultural Research Service (ARS).

In this post, Wheat Letter offers broad information about public wheat breeding programs in South Dakota, North Dakota, Minnesota, Montana, and Wyoming. Future posts will cover breeding programs in other states.

South Dakota State University

With a primary goal to develop and release wheat varieties with high and stable yield potential and superior end-use quality for milling and baking, South Dakota State University’s (SDSU) wheat breeding program offers a strong return to farmers and downstream customers. The focus is on hard red spring (HRS), hard red winter (HRW) and hard white (HW) wheat development.

“Breeding is a long-term process,” said SDSU Associate Professor and Winter Wheat Breeder Sunish Kumar Sehgal. “We need to keep investing in breeding for the long-term good of the program.”

Farmers support the SDSU breeding program through wheat checkoff funding administered by the South Dakota Wheat Commission. More support comes from federal programs, seed sales and other stakeholders.

Dr. Sunish Sehgal

Dr. Karl Glover

Approximately 75% of South Dakota’s HRS planted area includes SDSU cultivars developed under the direction of Professor Karl Glover. With additional funding from the ARS through the U.S. Wheat and Barley Scab Initiative, Dr. Glover is also working collaboratively with Dr. Sehgal to develop new wheat varieties that are more resistant to fusarium head scab.

University of Minnesota

Historically, Minnesota HRS wheat has highly functional protein with a high-quality baking experience. Yet importers demand more consistent functional quality and domestic millers increasingly source grain from specific cultivars best suited for producing their products. That is why the University of Minnesota (UMN) HRS wheat breeding program is developing new disease-resistant, high-yielding cultivars with an increasing emphasis on improved end-use quality.

“Minnesota growers are by far the most progressive people I have ever worked with in terms of weighing economic, environmental and consumer demands,” said Charlie Vogel, CEO of the Minnesota Wheat Research and Promotion Council, which supports the UMN spring wheat breeding and genetics program led by Professor James Anderson. “They look beyond the farm gates, to a bigger picture of the customers we serve around the world.”

Dr. James Anderson. University of Minnesota photo.

Dr. Anderson said a comprehensive genetic and breeding approach is necessary to respond to farmer and end-use customer needs. UMN genetic studies identify wheat chromosomes and DNA markers that influence disease resistance and grain quality. Markers in turn help the breeder identify the best lines to work with, and the UMN team tests cultivars for commercial viability in field trials across the state.

North Dakota State University

North Dakota State University is home to three HRS, durum and HRW breeding programs that reflect the legacy of North Dakota wheat farmers to produce wheat that “provides special, inherent quality attributes that cannot be sourced elsewhere,” according to the North Dakota Wheat Commission (NDWC). The commission contributes about 40 percent of its budget to research, prioritizing investment in customer needs for end-use quality.

NDSU test plot, Carrington, N.D. NDSU photo.

The NDSU durum breeding program is the largest in the country, led by Dr. Elias Elias and a team of technicians and graduate students. The goal: maximize return to the farmer while yielding excellent quality durum to domestic and international markets. The majority – 90% or more – of durum planted in North Dakota are NDSU varieties.

Dr. Elias Elias, NDSU durum breeder.

North Dakota produces more HRS wheat than any other state. The NDSU HRS breeding program makes high end-use milling and baking quality a priority while advancing agronomic traits. Dr. Andrew Green, who leads the HRS breeding program with his team of technicians, said: “Protein quality is essential to maintain high HRS demand so our program emphasizes developing balanced varieties that are profitable for producers and valued by end-users.”

The photo at the top of this page is a demonstration trial Dr. Green created that includes every HRS variety developed by NDSU over more than 100 years.

Dr. G. Francois Marais breeds HRW wheat varieties at NDSU. This program focuses on developing new varieties that are adapted to the northern Plains with improved winter-hardiness, disease resistance, yield and processing quality.

NDSU varieties selected for commercialization are produced through NDSU’s North Dakota Foundation Seedstocks program and marketed by the North Dakota Crop Improvement Association.

Montana State University

Montana has a wide range of farming ecosystems so the Montana State University (MSU) wheat breeding program tries to producing HRS, HRW, HW and durum varieties adapted to meet the challenges of these conditions. MSU bread wheat varieties provide exceptional milling, dough and baking characteristics, while durum varieties meet the demanding standards of the world’s best pasta producers.

Professor Phil Bruckner heads up MSU’s HRW breeding program and is very familiar with export market quality standards. In 2017, he joined a USW Wheat Quality Improvement Team to Taiwan and Thailand to discuss which quality characteristics end users value the most. Assistant Research Professor Jason Cook currently manages MSU’s spring wheat breeding and serves as one of the directors along with Dr. Bruckner of the MSU Cereal Quality Laboratory. Dr. Cook worked closely with former MSU spring wheat breeder Dr. Luther Talbert who left a legacy of producing high-quality HRS varieties when he retired late in 2019. In addition, the growing interest in the use of HW wheat for the Asian noodle market has instituted noodle quality evaluation.

MSU HRW wheat breeder Dr. Phil Bruckner.

Over the years, MSU breeders developed hundreds of durum varietal lines and continue to do so. Dr. Mike Giroux, who heads MSU’s plant genetics program, is also breeding new durum lines. The first variety from that program, a high-yielding durum with desirable pasta quality traits including semolina extraction, pasta firmness and color, is now in the field with the MSU Foundation Seed program to increase seed stock for commercialization in 2022.

Through the Montana Wheat and Barley Committee, Montana farmers invest over $2 million every year in wheat and barley research at MSU and other institutions.

University of Wyoming

Because of Wyoming’s relatively small wheat production area, HRW and HW varieties developed by neighboring public breeding programs are tested at University of Wyoming (UW) agricultural experiment stations. With checkoff funds administered by the Wyoming Wheat Marketing Commission (WWMC), farmers created the Crop Research Foundation of Wyoming in 2012 to make sure they would always have wheat seed sources that perform well in Wyoming’s high-altitude, short-growing season.

University of Wyoming wheat field trial.

Under this program, UW screens and develops elite HRW and HW lines from Colorado State University, Montana State University and the University of Nebraska. One example, cited by WWMC Executive Director Keith Kennedy, is “Spur,” a solid stem HRW variety developed at Montana State University that helps reduce damage from the wheat stem sawfly pest. Spur was licensed by the foundation in 2017 and sub-licensed to a private seed company for sale outside Wyoming. Kennedy said farmers seeded Spur on about 5% of Wyoming’s wheat area for the 2020/21 crop.

Read about other U.S. wheat public breeding programs:

Programs Serving Southern and Central Plains Producers
Programs Serving Soft Red Winter Producers
Programs Serving West Coast Producers

Read about other U.S. wheat commercial breeding programs:

BASF Corp. and Corteva
AgriPro and WestBred

February 17, 2021/by actualize

USW Announcements, Wheat Export Supply System

Global Audience Watching “Wholesome: The Journey of U.S. Wheat” Film

U.S. Wheat Associates (USW) is excited that so many people around the world have seen the new film titled “Wholesome: The Journey of U.S. Wheat,” which had its premiere on Jan. 12, 2021, on the USW Facebook page. The film is also available for viewing online on Vimeo at https://bit.ly/WholesomeTheJourneyofUSWheat.

USW produced the 23-minute film in cooperation with the USDA Foreign Agricultural Service and Federal Grain Inspection Service, state wheat commissions, local elevators and export elevators. It is now available to USW’s 13 overseas offices and is the foundation of USW’s messages to world wheat buyers and users about U.S. wheat export quality throughout 2021.

“The people at every step of U.S. wheat’s journey to export featured in the film tell their own stories about how they thoughtfully produce new varieties, care for the land and the crop, and handle the wheat responsively to ensure it meets customer needs,” said USW Vice President of Communications Steve Mercer. “Functional quality is a crucial part of the reliable U.S. wheat supply and the people play such an important role in maintaining quality, so we wanted them to help remind our customers about why U.S. wheat is so valuable.”

USW has also produced individual short subject programs covering chapters featured in the film. Each of these programs will be available for viewing on the USW website.

February 16, 2021/by actualize

Columbia Snake River System, Wheat Export Supply System

Capital Press Reports on Proposal to Remove Snake River Dams

By Matthew Weaver. Reprinted from Capital Press with permission.

Editor’s Note: The image at the top of this story shows the Columbia-Snake River System with wheat export loading facilities on the rivers. Blue color indicates areas of soft white wheat production, Gold color indicates hard red spring production area, and Green color indicates hard red winter production area. View this interactive U.S. Wheat Export Supply System map produced by U.S. Wheat Associates (USW) here.

U.S. Rep. Mike Simpson says his plan to end all salmon litigation and remove four Snake River dams would offer agriculture unprecedented legal protection, but industry stakeholders say it’s a nonstarter.

Simpson, R-Idaho, has not proposed legislation, but on Feb. 7 released a $33.5 billion concept for salmon recovery, which includes removing the Lower Granite, Little Goose, Lower Monumental and Ice Harbor dams on the lower Snake River in 2030 and 2031.

“It’s such a different approach,” said a Simpson representative, speaking on background. “We’re not saying, ‘Take the dams out and save salmon.’ We’re saying, ‘Save agriculture, replace everything and then save salmon.’” If the dams are removed, each interest group would need sufficient resources to replace the benefits they currently receive, the representative said.

Replacement power generation would have to be built and online by 2030, prior to breaching the dams.

The concept includes an automatic 35-year extension of licensing for all remaining public and private dams generating more than 5 megawatts in the Columbia River Basin. This would “lock in” the dams and eliminate the “slippery slope” argument of, “If you allow them to remove these four dams they will go after the other main-stem Columbia River dams and others,” the representative said. Under the concept, if the dams are removed, any litigation related to anadromous fish within the Columbia River system under the Endangered Species Act, National Environmental Policy Act or the Clean Water Act would be immediately halted and stayed for 35 years.

The plan combines many different elements that are not necessarily related, including fish recovery, energy generation and electricity rates, said Kristin Meira, executive director of the Pacific Northwest Waterways Association.

Each element requires its own intense inquiry and study, she said.

“Unfortunately, the idea of Snake River dam breaching is a non-starter when it comes for how we move cargo and ultimately for our energy portfolio,” she said. Taking out the dams would make that stretch of the Snake River impassable for barge traffic.

The Ice Harbor Dam and navigation lock near Burbank, Wash., on the Lower Snake River provides navigation, hydroelectric generation, and incidental irrigation. iStock photo.

Stakeholders also say breaching the dams won’t achieve salmon recovery, pointing to fish declines along the West Coast due to ocean temperatures, runoff and other factors.

Four of 13 endangered salmon populations listed traverse the Snake River dams, said Glen Squires, CEO of the Washington Grain Commission.

“Everybody knows salmon are not doing well regardless of the rivers that have dams, don’t have dams,” Squires said.

Removal of the dams and the navigation system would affect reliability and timeliness of wheat delivery to customers overseas, Squires said.

“When we visit with overseas buyers, very seldom, if ever, do they ask about what’s going on with the barge system,” he said. “What they ask about is, what’s going on with the rail system?”

Transportation costs to get wheat to West Coast ports would increase by 50% to 100%, said Michelle Hennings, Washington Association of Wheat Growers executive director.

Barging is the most carbon-friendly mode of transportation, Hennings said. Switching to trucks and trains would likely increase carbon dioxide and other harmful emissions by over 1.25 million tons per year.

“This is not a plan that gets us on a greener path when it comes to cargo movement,” Meira said.

Read additional information about this issue at the following links:

https://www.wawg.org

https://www.owgl.org/p/resources/latest-news

IGPA Press Release

https://www.pnwa.net/wp-content/uploads/20210204-Simpson-plan.pdf

https://nwriverpartners.org/wp-content/uploads/2021/02/2021-NWRP-Simpson-Plan-PressStatement.pdf

https://www.tri-cityherald.com/news/local/article248998910.html

https://simpson.house.gov/salmon/

February 11, 2021/by actualize

Wheat Industry News

Recent news and highlights from around the wheat industry.

Speaking of Wheat. “Sixty-five percent of the varieties in the U.S. are produced by … the public sector. … That has made the international community of wheat a very collaborative group of people, so we try to share as much as possible.” says Dr. Jorge Dubcovsky, plant geneticist and professor of plant sciences who leads the small grains breeding program at the University of California-Davis.

Family Farms Comprise 96% of all U.S. Farms, account for 87% of land in farms, and 82% of the value of all agricultural products sold, according to the 2017 Census of Agriculture Farm Typology report. Released by the USDA National Agricultural Statistics Service (NASS), the report defines a “family farm” as one in which the producer and individuals related to the producer own the majority of the business.

Vilsack on Way Back to USDA. The U.S. Senate Committee on Agriculture, Nutrition, and Forestry has voted in favor of President Biden’s nominee for Secretary of Agriculture, Tom Vilsack, who served as Secretary for eight years in the Obama Administration. The full Senate must now approve the nomination. National Association of Wheat Growers (NAWG) CEO Chandler Goule said, “Secretary Vilsack demonstrated his qualifications … and his vast knowledge of issues important to production agriculture.”

NCI Cereal Innovators Webinar Series. The Northern Crops Institute’s “Cereal Innovators” interactive webinar series focuses on new and unique ways to use cereal grains. This month’s webinar on Feb. 10, will feature Andrew Ross, Oregon State University professor in the Crop and Soil Science Department covering “WHY cereal and whole grains, WHAT cereal grains, the HOW of cereal grains: milling and other processes, the WHERE of cereal grains and more.” Sign up for this webinar here.

NAWG is Hiring a Director of Communications and Partnerships. This position will focus on implementing a strategic communications and partnerships plan that will increase the organization’s exposure at the national and state levels as well as on Capitol Hill. Read the full job description and more information on how to apply here.

IGP Institute Flour Milling and Grain Processing Course Schedule. The IGP Institute at Kansas State University in Manhattan, Kan., has several flour milling and grain processing courses planned in 2021, covering all aspects of managing the flour milling process from grain selection to finished products. View the full course schedule and register here.

Subscribe to USW Reports. USW publishes various reports and content that are available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts, the weekly Price Report and the weekly Harvest Report (available May to October). Subscribe here.

Follow USW Online. Visit our Facebook page for the latest updates, photos and discussions of what is going on in the world of wheat. Also, find breaking news on Twitter, video stories on Vimeo and more on LinkedIn.

February 4, 2021/by actualize

Market and Crop Analysis

Fundamental, Technical Factors Lifted U.S. Wheat Futures Prices

Given the strong surge in U.S. wheat futures prices over the past several weeks, U.S. Wheat Associates (USW) wants to share more information about the market factors behind the rise.

Some of the bullish factors do not appear to be short-lived. Driving the recent highs was remarkably higher Chinese demand for U.S. soybeans, corn and wheat; increased investments by managed money in U.S. agricultural commodities exchanges; news that the Russian government increased its wheat export tax; and continued dryness in the High and Southern Plains.

U.S. wheat futures prices for nearby delivery

By late January 2021, CBOT soft red winter (SRW) and KCBT hard red winter (HRW) futures prices reached their highest level in more than six years and MGE hard red spring (HRS) futures prices reached their highest level since late 2017. Source: DTN

U.S. Corn, Soybean and Wheat Exports to China

Historic U.S. commodity sales to China are supporting high wheat futures prices. To date, the United States has sold 11.8 million metric tons (MMT) of corn to China, completely eclipsing the last record of 4.90 MMT shipped to China in 2013. According to Reuters, China is on track to be the largest importer of U.S. corn for the first time in history. And sales aren’t slowing down: on Jan. 29, USDA reported a flash sale of 2.10 MMT of corn to China, the largest sale of U.S. corn to an overseas customer in a single day since 1991.

U.S. soybean sales to China have also set records. To date, the U.S. has sold 34.7 MMT of soybeans to China, 190% more than this time last year and 74% more than the 5-year average.

China’s demand for U.S. wheat has also been strong. Total sales to China, now the third-largest market for U.S. wheat, are substantially higher than this time last year at 2.58 MMT, more than 5 times greater than the 5-year average. HRW sales to China now total 1.13 MMT, the first major Chinese HRW purchase in many years. HRS sales to China of 566,000 metric tons (MT) are nearly nine times greater than the same period in 2020 and white wheat (soft and hard) sales are up more than 400% at 714,000 MT.

Source: USDA FAS export sales data as of Jan. 21, 2021

Technical Strength

Joining the trade excitement are managed futures funds, an investment where professionals actively manage a futures contract portfolio. These speculative commodity funds are buying significant amounts of U.S. corn, soybean and wheat futures contracts. They are “long” in the markets with the expectation that the contracts will gain value over time.

“Simply put: China is driving the boat,” said one U.S.-based trader. “Funds are pouring money into Chicago and other exchanges because of our massive balance sheet of sales to China.”

“If corn jumps 19 cents per bushel in one day, wheat is going to follow in a big way,” said another trader.

Managed fund participants serve an important role in futures markets, giving buyers and users of a commodity like wheat the opportunity to hedge their price risk through speculators that accept the risk of price movements.

Russian Wheat Export Tax

What happens in a leading wheat exporting nation can move the market. On Jan. 26, the Russian government announced it would increase the country’s wheat export tax from €25 per MT to €50 per MT for March 1 to June 30 deliveries in an attempt to secure domestic food supplies and stabilize domestic prices. After Russia’s government approved the tax increase, Minister of Economic Development Maxim Reshetnikov said: “We hope in the near future the price situation will stabilize and we will be able to switch to a permanent mechanism of export duties.” Even so, USDA expects total Russian wheat exports in 2020/21 will reach 39.0 MMT, up 13% from last year and 18% more than the 5-year average, if realized.

The increased wheat export tax and minimal domestic selling by Russian farmers have also supported global wheat export prices. According to AgriCensus, between early December 2020, before the initial €25 per MT tariff was announced, and early February 2021, Russian 11.5% protein wheat (dry matter basis) free on board (FOB) prices increased 15% to $292 per MT. By comparison, Texas Gulf 11% HRW (12% moisture basis) FOB traded at $280 per MT at the beginning of February.

Source: AgriCensus

Drought Stress Across the Great Plains

Despite recent precipitation in some areas, extreme dryness continues to plague U.S. winter wheat producers, an all too familiar situation for wheat farmers in eastern Colorado, western Kansas, western Nebraska and eastern Wyoming.

“Dryness in the Plains adds underlying support to wheat futures prices,” said a grain trade representative.

As of Jan. 28, according to USDA, Colorado winter wheat ratings slipped from 19% good to excellent in early January to 17% by late January and 43% of Kansas winter wheat was rated good to excellent, down from 46% in late December 2020. USDA also reported that as of Jan. 26, 2021, “an estimated 32% of U.S. winter wheat production is within an area experiencing drought,” including major sections of U.S. hard red spring and northern durum production regions.

Every Friday, USW compiles information from market sources, including U.S. wheat exporters of all classes from various U.S. ports.

By Claire Hutchins, USW Market Analyst

February 3, 2021/by actualize

Shelbi Knisley, Sustainability

Technology, Innovative Farming Practices Advance Wheat Farm Sustainability

Across the United States, farmers produce more and better quality wheat using innovative farming practices including fewer natural resources, including land. According to an American Farm Bureau Federation report, in 2018, farmers needed about 8 million fewer acres (3.24 million hectares) to produce the same amount of wheat as in 1990.

The Biden Administration is currently establishing clear policy goals to fight climate change and reward conservation. It is more important than ever to share the success stories of how U.S. wheat farmers employ sustainable, innovative farming practices to protect their land and positively impact the environment.

U.S. wheat farmers are more economical and sustainable today by implementing agronomic practices and investing in technologies, research and development. Technology plays an essential role in making U.S. agriculture sustainable. When wheat breeders use advanced techniques and technologies to produce high-yielding, high-quality wheat varieties, it contributes to preserving the land’s natural resources through water and soil nutrient conservation that work in harmony with local conditions.

In their production, U.S. wheat farmers apply many aspects of the following sustainable tools and practices:

Reduced Tillage

The USDA Economic Research Service reports that reduced tillage has grown in popularity, and farmers implement the practice on nearly 70% of U.S. wheat acres. While at times a necessary tool, traditional plowing and other deep tillage can be concerning. Continuous wheat production with deep tillage contributed to the infamous U.S. “Dust Bowl” of the 1930s. The introduction of reduced-till and no-till practices has helped reduce soil erosion and increase water retention on dryland crops. This practice also reduces fuel use and promotes carbon sequestration. Read more about the sustainability of practicing no-till farming here.

Crop Rotation and Cover Crops

After harvest, most wheat farmers practice crop rotation and switch to a different crop in the same fields. However, more and more farms are planting “cover crops” after harvest. Farmers incorporate this crop into the soil before planting the next crop. Both these practices are beneficial in preserving soil health as well as conserving water. Cover crops add soil nutrients and organic matter and help prevent soil and water runoff. In one study, Desert Durum® wheat farmers who rotate to lettuce crops following their durum harvest reduced water use on average about 30%.

On his family’s Kansas farm, Justin Knopf has invested in soil health through cover crops, no-till and crop rotations.

Water Conservation

Wheat is a naturally water-efficient crop. In much of the United States, wheat is grown during cooler months and has a longer growing season – providing more opportunity for it to capture naturally occurring precipitation. Only about 10% of U.S. wheat acres are irrigated. Even when farmers irrigate their wheat, it often needs less irrigation than many other crops.

California grower Roy Motter innovative farming practices like crop rotations. rotation crop to

California grower Roy Motter uses Desert Durum® as a rotation crop to let the soil rest between vegetable crops and to help control weeds and disease. Growing durum in a rotation with lettuce reduces water use on his farm by 24% to 50%.

Precision Agriculture

Farmers use technologies such as crop yield monitors, soil maps and global positioning systems (GPS), and drones. These technologies allow farmers to apply inputs more precisely, monitor plant health and collect data on soil nutrients and other natural resources. For example, such technology enables farmers to adjust seed, fertilizer and crop protection inputs with near pinpoint accuracy, ensuring the correct rates are applied or seeded in the right location while on the go in their fields. Greater efficiency through precision agriculture practices means greater economic and environmental sustainability.

Oregon soft white wheat grower Bob Johns (right in the photo at the top of the page) and his farming partner Chris Williams (left) say technology from improved breeding to drones help them make better-informed decisions about how inputs and management affect their yields, soil and crop health, and profitability.

U.S. Wheat Associates (USW) supports finding new ways to improve wheat quality and increase production with less impact on the environment. To learn more about how U.S. wheat farmers are using innovative farming practices to produce more food and fiber sustainably, visit the “Innovation and Sustainability” section of our website.

By Shelbi Knisley, USW Director of Trade Policy

Read other stories in this series:

Special Climate and Sustainability Committee Launched on Earth Day
Precision Agriculture Improves Environmental Stewardship While Increasing Yields
U.S. Farmers Always Think About Economic and Environmental Sustainability
Minnesota Farmer Spread the News with His Conservation Practices
U.S. Farmers Embrace Conversation Practices
Farmers Look to New Technologies to Foster Precision Agriculture
Cargill CEO Highlights Farmers Role in Pandemic and Promoting Sustainability

February 2, 2021/by actualize

Plant Breeding Innovation, Wheat Quality

Public Wheat Breeding Programs Serving Southern and Central Plains Farmers

There is a wide range of U.S. public and commercial breeding programs working to develop wheat classes and varieties adapted to the production constraints in different regions while meeting customer end-use needs. An estimated 65% of all U.S. wheat varieties across six distinct classes were developed by public university breeding programs, funded in part by state wheat commissions, royalties from the sale of public varieties, and the USDA Agricultural Research Service (ARS).

In this post, Wheat Letter offers broad information about public university wheat breeding programs in Texas, Oklahoma, Kansas, Colorado and Nebraska. Future posts will cover breeding programs in other states.

Texas A&M

With support from research grants from the Texas Wheat Producers Board (TWPB), Texas A&M University puts a major focus on projects aimed at enhancing end-use wheat quality to produce a product with more functionality for domestic and overseas customers. For example, TWPB points to the recent development of two new Texas A&M winter wheat varieties that performed well with fewer inputs, decreasing farm financial burdens while showing exceptional milling and baking characteristics.

Dr. Amir Ibrahim is a professor and the project leader of the Texas A&M Small Grains Breeding program. He manages wheat cultivar development for South and Central Texas among other responsibilities. Dr. Jackie Rudd, Texas A&M AgriLife Research wheat breeder in the Texas Panhandle is also working to develop better wheat varieties for breadmaking and farmers alike. An associate research scientist in the AgriLife Cereal Quality Lab and other specialized researchers are part of the Texas A&M wheat team.

Texas A&M geneticists Dr. Shuyu Liu (second from left) and Dr. Chenggen Chu (right) are using doubled haploid plants to shorten the time to develop genetically pure lines in a traditional winter wheat breeding scheme.

Oklahoma State University

Wheat Improvement research in Oklahoma is driven by an interdisciplinary team of Oklahoma State University (OSU) scientists charged with developing highly adapted winter wheat cultivars with marketable grain quality, in partnership with the Oklahoma Wheat Commission (OWC) and the Oklahoma Wheat Research Foundation. Dr. Brett Carver directs the program as OSU Wheat Genetics Chair.

OWC Executive Director Mike Schulte says the wheat genetics program is committed to excellence in creating varieties to meet the specific needs of Oklahoma wheat producers and the milling and baking industries. OSU varieties are sold to farmers through Oklahoma Genetics, Inc., a non-profit organization directed by Oklahoma farmers.

“OSU wheat varieties, thanks in large part to significant investment by producers through the check-off OWC manages, have led the state in planted area every year since 2010,” said Dr. Carver. “In addition, the top planted varieties from OSU almost always appear on preferred variety lists publicized by the U.S. domestic milling industry over the past five years. The emphasis by the OSU Wheat Improvement Team is, and will continue to be, on a quality yield, not just yield alone.”

OSU wheat genetics lead Dr. Brett Carver (right) in 2019 discussed cross breeding techniques to select for functional quality in hard red winter wheat with British officials at the OSU research facilities.

Kansas State University

The wheat breeding team at Kansas State University (K-State), led by Dr. Allan Fritz in Manhattan, Kan. and Dr. Guorong Zhang at K-State’s Agricultural Research Center in Hays, Kan., has produced the most widely planted varieties in Kansas in nine of the past 10 years through the Kansas Wheat Alliance.

The world-renowned Wheat Genetics Resource Center (WGRC) has established a national and international network to conduct and coordinate genetic studies in wheat. Located in the Kansas Wheat Innovation Center, the state’s single-largest, farmer investment in wheat research, the WGRC has also been recently designated as a National Science Foundation Industry/University Cooperative Research Center. This is the first I/UCRC focusing on plant sciences. The main K-State breeding team works with the WGRC on genomic mapping and marker-assisted breeding. Other cooperators include the USDA-ARS Hard Wheat Quality Laboratory and wheat programs in the Plant Pathology and Grain Science Departments. Some germplasm lines are also released in conjunction with USDA’s hard winter wheat genetics program.

There is tremendous producer support in the state and region for K-State’s wheat varieties and breeding program. Generous funding for its efforts comes from the Kansas Wheat Commission. Wheat quality is also a priority. Varieties tested for two years and earmarked for release are entered in the Wheat Quality Council (WQC) Milling and Baking Test Program to ensure the varieties meet WQC milling and baking standards. Grain Craft has recently moved its Wheat Quality Lab to the Kansas Wheat Innovation Center, which completes the missing piece in the puzzle in the facility, from variety development through end-use quality testing.

In addition, in 2020, the USDA’s National Institute for Food and Agriculture awarded K-State a $1 million grant to establish the International Wheat Yield Partnership (IWYP) Winter Wheat Breeding Innovation Hub. K-State will lead the effort to evaluate research findings from several IWYP projects that contribute to “significantly improve” wheat yields.

The research team led by Dr. Allan Fritz (above) in Manhattan, Kan., and Dr. Guorong Zhang at K-State’s Agricultural Research Center in Hays, Kan., has produced the most widely planted wheat varieties in Kansas in nine of the past 10 years.

Colorado State University

Thanks to help from Colorado farmers through the Colorado Wheat Administrative Committee, the Colorado State University (CSU) wheat breeding program has built a reputation for success. The goal is to develop varieties that are adapted to Colorado’s unique growing conditions but also have excellent end-use quality to meet milling and baking needs. In 2019, Wheat Quality Lab Manager John Stromberger, now retired Wheat Breeder Dr. Scott Haley, and Extension Agronomist Jerry Johnson, reported on the quality of CSU trial varieties and encouraged producers to carefully consider planting agronomically acceptable varieties with better quality. CSU wheat breeding will continue under the direction of Dr. Esten Mason.

The Colorado Wheat Research Foundation (CWRF) works hand in hand with CSU to help develop and distribute new wheat varieties. As the university develops new varieties, CWRF takes ownership and works with eligible certified seed growers. CWRF collects royalties for certified seed that supply funding for more CSU wheat research. These varieties are sold under the brand name PlainsGold^TM.

A portion of funding for wheat breeding and research at Colorado State University comes from the sales of public wheat varieties.

University of Nebraska-Lincoln

The Nebraska Wheat Board supports research and breeding programs at the University of Nebraska-Lincoln (UNL) and USDA-ARS efforts to improve agronomic performance for producers, and end-use quality characteristics for millers, bakers and consumers. Dr. Stephen Baenziger heads the UNL small grains breeding program and says the work is highly dependent on a wide range of researchers and public and private support.

For example, Dr. Baenziger has spent several years studying hybridization of wheat in partnership with Dr. Ibrahim of Texas A&M. Ibrahim and Baenziger have tested more than 600 lines of hybrid wheat varieties in Nebraska and Texas. They are now developing the necessary knowledge base, germplasm and enhanced trait pools or patterns from these lines to support the development of hybridized wheat.

The team’s newest project, “Plant breeding partnerships: Continuing to develop and validate the tools for hybrid wheat,” is supported by a $650,000 USDA National Institute of Food and Agriculture grant.

Dr. Stephen Baenziger leads Public Wheat Breeding Programs at University of Nebraska - Lincoln

Dr. Stephen Baenziger heads the University of Nebraska – Lincoln small grains breeding program.

Read about other U.S. wheat public breeding programs:

Programs Serving Northern Plains Producers
Programs Serving Soft Red Winter Producers
Programs Serving West Coast Producers

Read about other U.S. wheat commercial breeding programs:

BASF Corp. and Corteva
AgriPro and WestBred

February 1, 2021/by actualize

Desert Durum, Hard Red Spring, Hard Red Winter, Hard White, Market and Crop Analysis, Northern Durum, Soft Red Winter, Soft White, Supply and Demand

U.S Wheat Associates Shares Winter 2021 Wheat Supply and Demand Outlook

The U.S. Wheat Associates (USW) Board of Directors includes wheat farmer leaders appointed to represent each of the 17 state wheat commissions that are members of USW and meets three times during each marketing year (June to May). For each of the meetings, the USW Market Analyst prepares a “Wheat Supply and Demand Outlook” report based on USDA market data to provide an update on the global and U.S. wheat market. The full Winter 2021 report is posted at https://bit.ly/MarketSummary012721.

The report includes sections on world wheat supply and demand, wheat production in the major wheat exporting countries and regions, including U.S. wheat production by class, timely reports such as U.S. wheat seeded area, and U.S. commercial wheat sales.

The latest report, prepared Jan. 27, 2021, indicates marketing year 2020/21 is a significant one, with several records set. For example, USDA expects global wheat production to reach 773 million metric tons (MMT) following increased annual production in Australia, Russia and Canada among exporting countries. World wheat trade is expected to increase 1% to a record 194 MMT, which would be 7% more than the 5-year average. With strong carryover from 2019/20 and increased production, global wheat ending stocks are projected at 313 MMT, with China expected to hold 159 MMT and India 31.3 MMT of that total at the end of 2020/21. U.S wheat ending stocks, however, are expected to be the lowest since 2014/15.

USDA has also reported that U.S. winter wheat seeded area (including hard red winter, soft red winter, fall seeded soft white, hard white and Desert Durum^®) increased for the first time since 2013/14. Hutchins notes in the report that beneficial field conditions and strong farmgate price potential at planting time motivated hard red winter and soft red winter wheat producers to increase planted area from last year.

View the full Winter 2021 Wheat Supply and Demand Outlook at https://bit.ly/MarketSummary012721.

January 28, 2021/by actualize