United States : USDA Predicts Record Canola Planting as Spring Wheat Hits 50-Year Low
U.S. spring wheat acreage is set to fall to a 50-year low as farmers shift toward more profitable canola, with planting expected to rise over 20%. Higher fertilizer costs and strong canola prices are driving this shift, though crop rotation limits changes and consumer food prices may see little immediate impact.
For the first time in more than 50 years, spring wheat acreage in the United States is expected to hit a record low this year. At the same time, canola planting is projected to jump by more than 20 percent as farmers chase higher returns.
Economists say while wheat prices have bottomed out, canola is hitting multi-year highs. Frayne Olson, PhD, a Professor of Agribusiness & Applied Economics and an NDSU Extension Crops Economist, says that price gap is wide enough for farmers to justify high fertilizer costs on canola, though many are still restricted by strict crop rotation cycles.
“My assessment right now, this is really more of a short-term market response. The shock part of it this year specifically had to do with the sudden increase in fertilizer prices… crops like corn, spring wheat and canola are very heavy users of fertilizer,” said Olson.
While the planting map is changing, Olson says most consumers likely won’t notice it at the grocery store just yet. He adds energy and transportation costs still have a much bigger impact on food prices than the number of wheat acres planted.
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Source : KFYR TV
