What is wheat farmers market?

Wheat ranks third among U.S. field crops in planted acreage, production, and gross farm receipts, behind corn and soybeans. In 2021/22, U.S. farmers are estimated to have produced a total of 1.64 billion bushels of winter, spring, and durum wheat from a harvested area of 37.2 million acres, up slightly from last year’s record-low. Recent lows in wheat plantings are indicative of a long-term downward trend in wheat planted area and production. Since peaking in 1981, U.S. wheat planted area has declined by more than 40 million acres and production has decreased by more than 1.1 billion bushels.

U.S. Wheat Classes

Wheat is the principal food grain produced in the United States. The three primary varieties of the grain domestically sown are winter wheat, spring wheat, and durum wheat.

Winter wheat varieties are sown in the fall and usually become established before going into dormancy when cold weather arrives. In the spring, plants resume growth and grow rapidly until the summertime harvest. Winter wheat production represents approximately 70 percent of total U.S. production, on average.

Winters are harsh in the Northern Great Plains, so winter wheat plantings are limited, and spring or durum varieties are favored. Spring and durum wheat are typically planted as soon as soil conditions permit in mid-March through May and are harvested in the late summer or fall of the same year.

The three categories of wheat can be disaggregated into five major classes: hard red winter, hard red spring, soft red winter, white, and durum. Each class has a somewhat different end use and production tends to be region-specific.

• Hard red winter (HRW) wheat accounts for about 40 percent of total production and is grown primarily in the Great Plains (northern Texas through Montana). HRW is principally used to make bread flour.

• Hard red spring (HRS) wheat accounts for about 25 percent of production and is grown primarily in the Northern Plains (North Dakota, Montana, Minnesota, and South Dakota). HRS wheat is valued for its high protein levels, which makes it suitable for specialty breads and blending with lower protein wheat.

• Soft red winter (SRW) wheat accounts for about 15 percent of total production and is grown primarily in States along the Mississippi River and in eastern States. Flour produced from milling-grade SRW is used for cakes, cookies, and crackers.

• White wheat (both winter and spring) accounts for approximately 15 percent of total production and is grown in Washington, Oregon, Idaho, Michigan, and New York. Its flour is used for noodle products, crackers, cereals, and crusted white breads.

• Durum wheat accounts for 2-5 percent of total production and is grown primarily in North Dakota and Montana. Durum wheat is used in pasta production.

U.S. Wheat Use

U.S. consumer demand for food products made from wheat flour is relatively stable and largely unaffected by changes in wheat prices or disposable income. However, demand is closely tied to population and changing consumer tastes and preferences.

The strength of the domestic market for wheat developed from a historic turnaround in U.S. per capita wheat consumption in the 1970s. For nearly 100 years, per capita wheat consumption declined in the United States as diets diversified to include substitute carbohydrates such as potatoes and rice. Wheat consumption dropped from more than 225 pounds per person in 1879 to 180 pounds in 1925 before bottoming out at 110 pounds in 1972. After reaching this low point, per capita consumption began to steadily rise, and by 1997, consumption had rebounded to 147 pounds per capita. The rise in consumption benefited the U.S. wheat processing industry, and the industry expanded and modernized.

U.S. Wheat Trade

Although the United States produces only about 6-7 percent of the world’s wheat, it is a major wheat exporter. While it recently ceded the dominant role in world wheat exports to Russia and the European Union, the United States routinely ranks among the top three global wheat exporters. Rising global populations and incomes, especially in low- and middle-income countries, encouraged the expansion of world wheat consumption and—concurrently—global wheat trade. Despite expanding global wheat trade, the U.S share of global wheat exports is trending lower, estimated at around 11 percent for the 2021/22 wheat international trade year (July–June).

World Wheat Trade

Since 2000, the United States, the European Union, Canada, Australia, Argentina, and the former Soviet Union (including the three major wheat exporters Russia, Ukraine, and Kazakhstan) accounted for an average of 90 percent of world wheat exports. Prior to 2000, these exporters combined to represent 95 percent or more of world wheat exports.

Although a handful of nations dominate wheat exports, there are numerous wheat-importing countries. Most wheat is imported by developing countries with limited production potential. Wheat is a staple food in many low- and middle-income countries. Rising populations in various parts of the world combined with strong economic growth increase the demand for both milling-quality and feed wheat. Most of these countries have limited abilities to expand wheat production, which increases global demand for wheat imports. The largest growth markets for wheat imports include Africa—both North (Egypt, Algeria, and Morocco) and sub-Saharan (Ethiopia, Kenya, Nigeria, South Africa, and Sudan)—the Middle East (Iran, Jordan, Lebanon, Saudi Arabia, and Syria), and Southeast Asia (Indonesia, the Philippines, and Vietnam).

To know more visit: https://www.uswheat.org/market-information/supply-and-demand/