As U.S. wheat production lags this year due to weather, let's look at the big picture of where and what types of wheat are produced here, as well as our changing global role in this commodity.
Genetic improvement has been slower for wheat because of the grain’s genetic complexity and lower potential monetary returns to commercial seed companies, which discourage investment in research. In the corn sector, where hybrids are used, farmers generally buy seed from dealers every year. However, many wheat farmers, particularly in the Plains States, use saved seed instead of buying from dealers every year. In addition, U.S. food processors are wary of consumer reaction to products containing genetically modified (GM) wheat, so no GM wheat is grown in the United States.
Although wheat products have proven to be competitive with other foodstuffs in the domestic market in recent years, foreign competition (and policy) will continue to pressure U.S. wheat producers.
sources: usda
- The United States is a major wheat-producing country, with output typically exceeded only by China, the European Union, and India.
- Wheat ranks third among U.S. field crops in both planted acreage and gross farm receipts, behind corn and soybeans.
- U.S. wheat harvested area has dropped off nearly 30 million acres, or nearly one-third, from its peak in 1981 stemming in large part from foreign competition and because of declining returns compared with other crops and changes in government programs.
- About half of the U.S. wheat crop is exported.
- Despite rising global wheat trade, the U.S. share of the world wheat market has eroded in the past two decades.
Genetic improvement has been slower for wheat because of the grain’s genetic complexity and lower potential monetary returns to commercial seed companies, which discourage investment in research. In the corn sector, where hybrids are used, farmers generally buy seed from dealers every year. However, many wheat farmers, particularly in the Plains States, use saved seed instead of buying from dealers every year. In addition, U.S. food processors are wary of consumer reaction to products containing genetically modified (GM) wheat, so no GM wheat is grown in the United States.
Although wheat products have proven to be competitive with other foodstuffs in the domestic market in recent years, foreign competition (and policy) will continue to pressure U.S. wheat producers.
sources: usda