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Does the US produce enough wheat for the United States?

      

Overview

Wheat is produced on the third most acres in the United States following corn and soybeans. In 2021, the United States produced 1.65 billion bushels of wheat on 37.2 million acres. The most wheat produced in a year in the U.S. was 2.5 billion bushels in 1998 and in 2008. The states with the largest area planted to wheat in 2021 were: Kansas (7.3 million acres), North Dakota (6.5 million acres), Montana (5.5 million acres), Texas (5.5 million acres) and Oklahoma (4.4 million acres). The average yield for wheat in the USA in 2021 was 44.3 bu per acre, with Arizona, California and Kentucky recording the highest yields.

Production

There are seven major classes of wheat grown and marketed in the USA. These are: hard red winter, hard red spring, soft red winter, soft white, hard white winter, hard white spring and durum. Each class has different end-uses, and their production tends to be region-specific (Table 1). Hard red winter and hard red spring wheat account for 60% of the total U.S. production. These classes are primarily used to produce flour that is used to make products that are made from raised doughs or that require high gluten strength. Soft red winter represents 23% of wheat production and is used in making cakes, crackers, and cookies. Soft white wheat accounts for 15% of the production and is used in noodles, crackers and cereal products. Hard white wheats (both spring and summer) are used in similar applications as hard red wheats, but in the market are offered a slight premium over red types as they have a slightly higher flour yield when milled and in whole wheat applications tend to be less bitter. Durum wheat is considered a premium class of wheat and is used to produce pasta.

Prices and Demand

The price received by farmers for wheat varies considerably by year, class of wheat and its quality. Soft white wheat, hard spring wheat and durum tend to fetch a premium over other classes of wheat because of their more specialized uses. Test weight, protein content, falling numbers and the presence of deoxynivalenol (often referred to as DON or vomitoxin) can be used as a basis for premiums of discounts or in some cases the classification of the wheat that can only be sold feed wheat. Global demand for wheat and wheat products has been increasing due to population increases and rising incomes in many developing countries. Per capita wheat consumption in the USA, however, has been declining for more than a century. In 1879, wheat flour consumption was 225 lb per capita. Per capita consumption reached a low of 110 lb in 1972. Consumption rebounded to 146 lb by 2000, as flour-based foods such as pizza became more popular and because of the advent of bread machines. Over the past several years, however, per capita consumption of wheat flour has been decreasing as fad diets are encouraging an increasing percentage of the population to remove starches from their diet and due to concerns of gluten intolerance.

Value Added Opportunities

Wheat is generally marketed as a commodity, but a variety of value-added, niche markets exist. Organic food grains are increasingly important to some consumers. In addition, specialty wheat varieties (such as Khorasan) can be more palatable to those who have moderate allergies to wheat gluten. Finally, protein levels in both winter and spring wheat are important for food processors. In some years, high protein levels (especially in spring wheat) are often rewarded by substantial price premiums and there may be opportunity for premiums based on the variety grown. Hard white wheats also tend to fetch a premium over their red counterparts, but in most cases a contract may be needed to enter this market.

Competitive Analyses

U.S. wheat acreage continues to be pressured by a variety of factors. Increased demand for corn, resulting from expanding ethanol production, has caused some wheat acreage in the Upper Midwest to shift to corn. On the other hand, world wheat prices are historically about 125% of the price of corn because wheat can be used for livestock feed. Hence, increases in corn prices and reduced wheat acreages have had a positive impact on wheat prices. The recent acreage changes in the United States have little impact on world prices given that U.S. wheat production is only about 6-7% of the world’s total and currently only around 12% of the world trade. In addition, it appears that Eastern Europe is developing infrastructure that could make it a larger competitor in world wheat markets. Whether institutions and property rights can also be developed commensurate with infrastructure improvements will likely be the deciding factor for growth in this region.

USW PROUDLY REPRESENTS THE HARD-WORKING FARM FAMILIES THAT PRODUCE ENOUGH WHEAT EVERY YEAR TO FILL AMERICAN TABLES, WHILE STILL SUPPLYING A LEADING SHARE OF WORLD WHEAT TRADE.

USW works to help wheat buyers, millers, bakers, wheat food processors, and government officials understand the quality, value, and reliability of all six classes of U.S. wheat.

To know more about Wheat Innovation and Sustainability in US Visit:

Innovation and Sustainability - U.S. Wheat Associates
U.S. wheat farmers support research to improve innovation and sustainability that increases production with less impact on the environment.
https://www.uswheat.org/policy/innovation-and-sustainability/#toggle-id-1

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