Kim Anderson has the Scoop on how Wheat Producers Can Turn a Profit with $4 Wheat - on SUNUPThu, 05 Oct 2017 18:16:58 CDT
This week on SUNUP – Oklahoma Grain Market Economist Dr. Kim Anderson joins host Lyndall Stout again, and this time to talk about profit strategy.
Given that ending stocks are currently very high, having come off of three world record years, right now at a projected 9.7 billion bu. – Anderson says the average price for 2018 harvest delivered wheat is at about $4.00 even. But, with very little protein in the market currently, producers with 11.4 percent protein wheat, can command a premium of about $1.15.
In order to make a profit off these prices, Anderson says it comes down to farmers’ ability to utilize best management practices.
According to Anderson, the average yields in Oklahoma are about 30 bpa. However, a significant amount of farmers reported having been able to achieve up to 45+ bpa. With an approximate cost of production for 30 bpa wheat calculated at around $190, put against an income calculated at about $120 – Anderson says farmers in this scenario are losing $70 an acre.
However, with 45 bpa wheat, your expenses run up to about $215 an acre. But, with 45 bpa and a minimum of 11.4 percent protein to secure at least some of the premium offered, that can potentially bump the price to about $4.75 – giving the farmer in this scenario an income of about $214 – right at breakeven costs, there.
Anderson says that if best management practices are employed to break disease, weed, pest and fungi cycles, such as double cropping or a rotation crop to bump yields up and farming with intention to grow a quality crop – he argues a producer can make it over the breakeven line and turn a profit. Perhaps not enough to make a living on, he says, but at least enough to be profitable.
You can watch their visit tomorrow or Sunday on SUNUP for the full scope of Anderson’s advice -or you can hear Kim's comments right now by clicking on the LISTEN BAR below.
Beyond Dr. Anderson’s weekly chat - the SUNUP crew has a very full lineup for your viewing this weekend:
This week on SUNUP, we talk with Dave Lalman about first-calf heifers.
- In Cow-Calf Corner, Glenn Selk explains the benefits of limit-grazing cattle on wheat pasture and preparing for grass tetany in older cows.
- Josh Lofton has some last minute canola planter calibration suggestions.
- In the Mesonet weather report, Al Sutherland says humidity and temperatures were high during the last rain event. Then, Gary McManus shows us where drought is growing in Oklahoma. It’s not where it usually appears.
- Brian Arnall shows us how the application of lime impacts soil health.
- Finally, in Food Whys, Jake Nelson explains how much weight is lost in the process of turning a beef carcass into customer-ready cuts.
Join us for SUNUP:
Saturday at 7:30 a.m.
Sunday at 6 a.m. on OETA-TV
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