ND Department of Agriculture Press Releases

FOR IMMEDIATE RELEASE SEPTEMBER 16, 2009

GOEHRING: BEST SHORT-TERM OPTION MAY BE TO STORE GRAIN

FARGO – Agriculture Commissioner Doug Goehring is recommending that wheat producers consider storing their 2009 hard red spring wheat until after harvest when the market has a better handle on the protein levels of this year’s crop.

“The market is discounting low-protein spring wheat by as much as 30 cents for each one-fifth percent of protein,” Goehring said. “I have heard of protein levels below 10 percent – which translates in some cases to well over $3 below the value of 14 percent protein wheat. Some farmers are reporting great yields, but with protein so low they won’t break even because of the high cost of seed, fertilizer, fuel, farm chemicals and other production costs.”

Discounts start when the protein level of spring wheat falls below the 14 percent standard. Spring wheat with 13 percent protein would easily sell for a dollar-and-a-half less per bushel than 14 percent protein.

“Unfortunately, the glut of wheat puts the market in a position to discount wheat that it not up to standard,” Goehring said. “I hope that once the spring wheat harvest is completed, the market will have a better handle on the yield and the protein. At that point, farmers can decide if they want to put their wheat under loan.”

Goehring finished harvesting wheat at his Menoken farm on Monday. He will store the grain, waiting for the protein issue to be resolved.

“Marketing crops is an inexact science,” he said. “Some farmers were caught off guard when they delivered grain to the elevator right from the field and were told the cash price. With the deep discounts for grain this year, farmers should make certain they discuss the situation with their lenders and marketers before they haul their grain to market.”

Goehring is in Fargo, participating in events related to the Big Iron trade show. He leaves Fargo later today, for the annual meeting of the National Association of State Departments of Agriculture in Birmingham, AL.

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MEDIA: For more information, please contact Ted Quanrud at (701) 328-2233 or tquanrud@nd.gov.