Wheat Acreage Drop Could Hurt Millers In Illinois

www.agrinews-pubs.com
Nat Williams
2010-05-20

The record-low wheat acreage in Illinois could have a negative effect on those who process it.

Representatives of two millers say the acreage drop could increase operating costs for them down the road.

Illinois wheat growers planted only 350,000 acres last fall, by far the lowest number of acres since records were first kept, in the 1860s. The previous low was 630,000 acres planted in 2005.

A smaller crop will likely force millers in the region to pull wheat from a larger radius, which will result in higher costs.

“We’re not going to know until it hits,” said Mark Miller of Mennel Milling in Mt. Olive. “We’ll wait for harvest and see what’s on board.”

Illinois wasn’t alone in the acreage drop. Nationally, planted winter wheat acreage totaled 37.7 million acres, a 13-percent reduction from the previous year.

Neighboring states also recorded major declines in planted acreage, which increases the problem for millers. Arkansas wheat growers planted only 210,000 acres, down from 430,000 the previous year.

Missouri’s planted acreage dropped from 780,000 acres to 390,000. Indiana wheat acreage fell from 470,000 to 300,000.

Kentucky growers planted 450,000 acres in wheat. That marks the first year Kentucky growers have put in more acres than those in Illinois.

And while the full impact may not be known for months, Miller said some things are certain.

“We’ll have to draw from a larger area,” he said. “But we’ve done that this year as well, because quality wasn’t as good as we like.”

Carl Schwinke of Siemer Milling in Teutopolis agrees that the low acreage will mean higher operating costs.

“Certainly, there will be increased costs in bringing in wheat from farther away,” he said. “That will have an effect.”

Illinois millers have worked for the past several years to provide growers with educational opportunities and other resources in an effort to increase yields.

“Obviously, our first choice is to buy as much as we can from local farmers,” Schwinke said.

While several things contributed to the low planted acreage, the late corn and soybean harvests were a major factor. Because of crop insurance considerations, late planting was not feasible.

“There was no incentive to plant after Oct. 30,” Schwinke said. “So most of those who had insurance didn’t plant wheat late.

“But there are lots of reasons not to plant late. You usually have lower yields and poor stands. As usual, weather has a lot to do with what we do.”

Wheat acreage has historically been inconsistent in Illinois, though low prices have resulted in lower average acreage. But Schwinke believes the crop is a good fit for southern Illinois.

“A lot of people had seed ready and were ready to plant,” he said. “That tells us people are not planting because they choose not to. They’re not planting because they can’t.”

And while acreage has taken a big hit, there is still good supply, Schwinke said.

“We try to carry over as much wheat as we can,” he said. “I’m sure there’s wheat left over from last year.”

And the one bright spot is that much of the wheat planted last fall appears to be in good shape so far, he added.


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