An over-abundance of wheat produced last year has market values almost half of what they were in 2013. To reflect on the 2016 crop, Kentucky wheat growers and specialists from across the Commonwealth are gathering Thursday in Hopkinsville for the 2017 Winter Wheat Meeting.
University of Kentucky Assistant Extension Professor Todd Davis says wheat is in an abundance globally and the market dynamic is projected to stagnate unless extreme weather conditions hinder production.
“The USDA released their baseline projections of price, and this is just the economic modeling but they would have wheat before $4.50 into the year 2020 barring any production problem along the way." Said Davis.
According to Davis the current price per bushel is around $3.70. He says looking at the numbers and keeping records is a crucial part of being profitable amid potential challenges.
"Wheat by itself, struggles," but the double crop, can add some nice profitability to the enterprise said Davis. The wheat also provides stability to the soil, and "farmers like that" added Davis.
"As far as profitability, you always plan at a certain price but in the back of your mind you stand ready if there is a weather issue somewhere else. You know if there is a problem in the southern hemisphere crop or if Canada has a problem, that's when the U.S. can step in and export more wheat and that would support higher prices," said Davis.
Specialists with UK and the University of Tennessee will lead discussions at the event ranging from weed and risk management to economic tools. The event is from 9 a.m. until 3 p.m. Jan. 5, at the James E. Bruce Convention Center in Hopkinsville.
Registration is at 8:30 and Lunch is provided.
