Wheat Prices Forecasted to Rise Next Season

The USDA’s most recent forecast for wheat prices show that farmers are likely not breaking even this year, or are finding it very hard to break even.

Chief Economist for the USDA Rob Johannson said next year looks better with prices up 35 cents to about $4.25 per bushel.

“Depending on other financial situations on every farm that you talk to which is a little bit different; cash rents are significant cost of production for a lot of these operations so depending on whether you’re owning your own property or you’re renting land and what the eventual price ends up being, I think $4.25 right around the break even level, so you’ll probably see a tight financial situation for wheat producers.”

Johannson said the early forecasts are very tentative.