Extension and Ag Research News

Accessibility


| Share

Producers Should Consider Wheat Loan Rates

The significant premium for durum over hard red spring wheat favors the planting of durum in those areas where the two classes of wheat can be expected to yield alike.

The U.S. Department of Agriculture has released county loan rates for 2010 crops. For most crops, the loan rate does not impact planting decisions.

Wheat is the exception. For example, the county loan rate in Divide County is $3.67 per bushel for hard red spring wheat, $6.02 for durum wheat and $2.36 for winter wheat. This relationship in loan rates between wheat classes is similar in all North Dakota counties.

“The significant premium for durum over hard red spring wheat favors the planting of durum in those areas where the two classes of wheat can be expected to yield alike,” says Dwight Aakre, North Dakota State University Extension farm management specialist. “The exception would be for farms enrolled in the ACRE program where the loan rates are reduced by 30 percent.”

For ACRE farms, the loan rates are below the expected market price and less of an influence on planting decisions.

“Farms not enrolled in ACRE that still have wheat to be planted should consider durum over hard red spring wheat since the safety net provided by the USDA marketing loan is considerably more favorable,” Aakre says. “It is unfortunate that these loan rates weren’t announced a month earlier before any of the wheat crop was in the ground in this area.”


NDSU Agriculture Communication

Source:Dwight Aakre, (701) 231-7378, dwight.aakre@ndsu.edu
Editor:Rich Mattern, (701) 231-6136, richard.mattern@ndsu.edu
Creative Commons License
Feel free to use and share this content, but please do so under the conditions of our Creative Commons license and our Rules for Use. Thanks.