US Wheat Harvest Crisis

• The USDA projects the smallest US wheat harvest since 1972.
• Farmers are favoring crops that need less fertilizer due to high input costs.
• The drought in the Plains is not the main reason for the small harvest.

The Situation

The USDA’s projection of the smallest US wheat harvest since 1972 has sparked concern.

Cause of the Problem

One reason for this small harvest is that farmers are planting more soybeans, which require less fertilizer than grains like corn and wheat.

growers expanded plantings of soybeans, which require less fertilizer than grains like corn and wheat

This is largely due to the high cost of fertilizer, which is related to the situation in the Strait of Hormuz.

It’s not the drought per se, it’s input costs. Farmers are favouring crops that need less nitrogen and potassium.

Another issue is the high price of hay for feed, with western hay prices as much as double what they were last year.

The Internet’s Verdict: 70% Hyped, 30% Skeptical

Focus Keyword: Wheat Harvest