Trade Not Hurting Northwest Wheat Growers As Much As Price

The trade war has had an impact on the farming community, but the depth and extent hasn’t been fully determined.  Earlier this year, many producers reported challenges getting some of the fertilizers they needed for their operations.  And as the trade war with China has continued, that’s really impacted our friends in the Midwest growing soybeans.

For Northwest wheat growers, it’s been the price, rather than the tariffs, that has impacted sales.

Commercial Wheat Sales Up Last Marketing Year

"For the last 24 months, we've had really advantageous prices for customers," said Casey Chumrau, Executive Director of the Washington Grain Commission.  "Of course, the prices are much lower than we would like to see as farmers, but we have been kind of saying that the wheat is on sale and our customers have been taking advantage of that. Our total commercial sales for the last marketing year, which ended the end of May, we were way up both for overall U.S. wheat and then for soft white that we grow here in the Pacific Northwest.”

Chumrau added with these low prices, other countries are using more wheat and purchasing greater quantities from the United States to help balance the trade balance.  When it comes to trade going forwarded, Chumrau said Southeast Asia continues to hold great potential for local wheat growers.

“We already have several of our top markets down there," Chumrau noted.  "Of course, the Philippines is #1 for Soft White, but we have Indonesia and Thailand. Vietnam is growing. All of those destinations also have positive, demographics, their populations continue to grow. They have a growing middle class, younger population than some of our traditional destinations like Japan and Korea. So we continue to focus on those markets."

WGC Wants Farmers Involved In Trade Efforts

Chumrau says the Grain Commission continues to look at ways to get growers involved in trade efforts, whether that’s on trade mission, or hosting buyers when they visit the region. 

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail glenn.vaagen@townsquaremedia.com