Russia and Ukraine are two of the world’s biggest exporters of wheat. Sanctions against Russia and the war in Ukraine are driving up global wheat prices. VOA correspondent Scott Stearns reports from the Western U.S. state of Wyoming on what those higher prices mean for U.S. farmers.
As this corn harvest moves to market, farmers outside the town of Albin, on Wyoming’s eastern plains, are seeing higher prices for hard red winter wheat due to disruptions to the world’s largest wheat exporter — Russia — and the world’s fifth-largest wheat exporter — Ukraine.
Kenny Tremain is president of the Wyoming Wheat Growers Association.
Kenny Tremain, Wyoming Wheat Growers Association:
"They market their wheat worldwide, just like everybody else does as much as they can. And if their wheat isn’t available, then other countries have to fill in the spot. That’s part of the problem there. Then also they are at the point where they are going to need to start planting some of their spring wheat. They’re in a war, and that’s holding up a lot of that."
That uncertainty has farmer Theron Anderson checking commodities prices online, including at a wheat market in neighboring Nebraska.
“Corn is off almost 10. The price for wheat at Kimball was nine dollars and forty-eight cents."
With Wyoming winter wheat still four months from harvest, Anderson expects more farmers will plant more wheat in August if the prices hold.
Theron Anderson, Farmer:
"Anytime we get an increase, we always like that, mainly because usually our prices are at best a break-even type of thing. These prices are good right now. Will they last? I hope so, but I’m not banking on it."
In Wyoming’s capital, Cheyenne, lawmakers and lobbyists understand how quickly higher prices can drop, especially with greater wheat exports from India.
Keith Kennedy is executive director of the Wyoming Wheat Marketing Commission.
Keith Kennedy, Wyoming Wheat Marketing Commission:
"There’s a whole lot of pieces to the puzzle. It’s not just, ‘Well, prices are high and we’ll plant wheat.’ Is there enough moisture that I might be able to grow a spring crop this year and take advantage of the high prices while they last, while there is uncertainty?"
Scott Stearns, VOA News:
"While the price spike means wheat farmers are getting more for their grain, they say much of the increase is being offset by other price jumps, some of which are also driven by the war in Ukraine."
Keith Kennedy, Wyoming Wheat Marketing Commission:
"A great deal of the world’s phosphate and potash comes from Ukraine and Russia as well. With those cut off, as well as very limited exports from China, the fertilizer situation almost puts us back to a place where we were a year ago as far as profitability for farmers."
Higher diesel prices make harvesting and transporting wheat more expensive. Tremain expects those higher input costs will outlast higher wheat prices.
Kenny Tremain, Wyoming Wheat Growers Association:
"Whatever happens over there, whatever the end result is, whoever is actually running the place, the wheat will be there. They will eventually get back to growing wheat."
Industry analysts expect U.S. consumers will see a 3- to 5-cent increase in the cost of whole wheat bread, with the next biggest price indicator being the state of the war in late June and early July, when Ukrainian wheat will be ready for harvest.
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