Rising wheat prices have left some farmers struggling despite higher market values, as soaring fuel costs and extreme weather threaten to cut into profits. With diesel fuel reaching record levels and drought devastating crops, one Kansas farmer faces losses after losing an entire wheat harvest to erratic conditions. Experts warn that disruptions in wheat exports could further drive up global food prices, already at their highest in years. The combination of economic and environmental pressures raises questions about whether farmers will actually benefit from the current price surge.
Some experts worry factors affecting wheat exports could push global food prices even higher than they are nowWheat prices are at their highest level in three years, which means farmer Merrill Nielsen should be getting more for his crops out of his 2,500-acre (1,010-hectare) Kansas farm.Yet even as future prices for bread-type wheat are up 39%, Nielsen is unsure whether increased prices will raise his bottom line. The price of diesel fuel, which he needs to run his tractor, has hit record highs. Then there’s the erratic weather that made him lose his entire wheat crop in the spring, and drought has overtaken the southern Great Plains. Continue reading...
