Farmers in the U.S. Midwest are bracing for what’s expected to be the worst wheat crop since 1972.
A record-setting drought, crop disease, and hotter-than-average temperatures are impacting much of the U.S. wheat industry this year.
Farmers say drought conditions have worsened the spread of the “Wheat Streak Mosaic Virus” and “Barley Yellow Dwarf Virus” that impact wheat crops.
The poor crop yields come as farmers also grapple with rising input costs due to the Iran war, especially for fertilizer and diesel fuel. They’ve also been hurt by U.S. tariffs over the past year.
Crop estimates for this year underscore how bad the current situation is for American wheat farmers.
The U.S. Department of Agriculture (USDA) says that farmers are likely to see their smallest wheat crop in terms of production since 1972.
Farms in Kansas, the centre of the U.S. wheat industry, are expected to be especially hard hit this summer, says the USDA.
Well into the spring planting season and 58% of the U.S. wheat crop has been rated as “poor” or “very poor” by the USDA.
The situation is leading to the U.S. losing ground in the global wheat market to Russia, China and the European Union, where crop yields are better.
Commodities analysts say the poor wheat crop this year is likely to push food prices higher, especially for items such as pasta and bread.
That’s bad news for consumers who are already struggling with inflation and high food costs.
Leading U.S. agriculture companies include Deere & Co. (NYSE: $DE) and Archer-Daniels-Midland (NYSE: $ADM).
