|One Farmer's Loss is Another One's Grain|
|Key Words||Prices, bushel, cost of production, subsidies, demand, trade sanctions, American dollar, exports|
Wheat prices are rising - much to the delight of farmers in the Pacific Northwest where the harvest is bountiful. After peaking at $5.02 per bushel in 1996, prices sank, reaching a low of $2.65. Now they are edging past $4, the cost of production. This means that farmers will not be reliant on subsidies from the federal government.
The demand for US wheat had been restrained by trade sanctions and a
strong American dollar, which made exports more expensive. Now, wheat
prices are higher because of problems elsewhere. Droughts have hurt the
yields in the Midwest and Australia, while India has suffered its worst
monsoons in 15 years.
(Updated October 10, 2002)
|Source||Associated Press, "Tassels worth hassles," Rocky Mountain News, August 9, 2002.|
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