U.S. Wheat Farmers Adapt as Harvest Delays and Low Prices Take Toll
Farmers Shift Strategies Amid Struggling Wheat Harvest
Reuters’ Emily Schmall reported that across the U.S. wheat belt—spanning Texas to Montana—farmers are cutting losses early this season. Many are baling wheat into hay, plowing fields under, or allowing livestock to graze on crops. In Nebraska, wheat acreage has dropped to less than half of 2005 levels.
While crop insurance helps offset losses from damaged or unprofitable fields, farmers acknowledge that relying on insurance payouts is unsustainable. The Great Plains, long romanticized for their "amber waves of grain," remain the primary producers of hard red winter wheat, prized for bread-making. However, with prices stuck near $5 per bushel, growers face tough choices: absorb losses, feed wheat to cattle, or abandon crops altogether.
Interviews with farmers and analysts in Kansas, Nebraska, and Oklahoma—along with USDA data—highlight wheat’s declining profitability compared to alternatives like corn, soybeans, or livestock. Persistent drought has hurt yields, while bumper global harvests have suppressed prices even in good years. As a result, many multi-generational wheat farmers are shifting to more lucrative crops.
Dennis Schoenhals, an Oklahoma wheat grower and state association president, summed it up: "Eventually, you either adapt or go out of business."
Harvest Progress Lags Due to Weather Woes
According to Dow Jones’ Kirk Maltais, the USDA reported that as of mid-June, only 10% of the winter wheat harvest was complete—far behind last year’s 25% and the five-year average. Excessive rainfall is largely to blame, with concerns mounting over potential quality declines if wet conditions persist. Analysts warn that lower-grade wheat could compete with corn in livestock feed markets.
World-Grain’s Matt Noltemeyer noted that harvests in the southern Plains remain stalled due to spring rains, delaying combines and worsening crop conditions. While Texas and Oklahoma have seen sporadic activity, progress in Kansas, Oklahoma, and Texas lags behind historical averages.
Wheat Acres Shrink as Farmers Diversify
Schmall’s reporting reveals a steady decline in U.S. wheat production, with farmers increasingly turning to corn, soybeans, or cattle. In Nebraska, wheat acreage has plummeted from 2.2 million acres two decades ago to under a million today. Some regions, like Cheyenne County, have seen 20% of fields abandoned this year.
Lon Frahm, a Kansas-based farmer, now focuses primarily on irrigated corn, with wheat accounting for just 5% of his output. "It’s heritage, but there’s no profit," he said, citing drought and global competition. In areas like Thomas County, wind farms now dot landscapes once dominated by wheat—a sign of the sector’s shifting economics.
Originally published by Farmdoc, this report underscores the mounting challenges for U.S. wheat growers as they navigate weather disruptions, falling prices, and the need to adapt to survive.