Wheat the new gold in time of plenty for US farmers

[n2doc]

As fires wreck Russia's harvests and poor countries brace for shortages, it's boom time for Kansas farmers.

By David Usborne

Wildfires, floods, crippling droughts, and even a threatened plague of locusts have wrecked crops and ruined harvests around the world, raising fears of global food inflation shortage and food riots.

But as they hose off the dust and chaff caked on their exhausted combine harvesters, farmers in America's plain states are adjusting to something possibly wonderful: a combination of unusually good wheat yields and suddenly soaring prices – thanks to disastrous circumstances elsewhere – has put them at the centre of a gold rush.

"It feels like Christmas in August," admitted Darrell Hanavan, of the Colorado Wheat Administrative Committee, noting that the harvest just completed in his state seems to have been the most bountiful for 25 years. More importantly, the dollar value for the crop is almost sure to set a record.

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http://www.independent.co.uk/news/world/americas/wheat-the-new-gold-in-time-of-plenty-for-us-farmers-2052326.html

[Warpy]

1. Expect a five dollar loaf of bread, though

because those record wheat prices are going to be felt in the US, too.

At least there's a reason for this one, it's not just hedge fund speculation driving up commodities prices to insane levels in the absence of shortages or increased demand. This shortage will be real.

It's about time the farmers had a good year, though.

[izquierdista]

4. Bread is cheap in Russia

A pound loaf is about 40 cents and pasta is even cheaper. Locally made means less transportation costs, labor is cheaper, and supermarkets can't jack up the price like they do in the US. And if wheat does go up a bit, people will cut back and eat more potatoes.

If anyone wants to compare prices, check out the Фуршет website: http://www.furshet.ua/

Of course here, marketing departments will be telling you what a bargain you are getting at $3.99 a loaf

[Warpy]

5. Bread is subsidized in a lot of countries

so the poor won't rise up again.

Bread here is already $3.99 if you want something better than that balloon bread that makes your teeth squeak when you eat it. Five bucks a loaf is no stretch at all.

Forget about subsidies. In this free market paradise, we'll have to eat cake.

[izquierdista]

6. No subsidies there

In the former Soviet Union, food is dirt cheap because people are dirt poor and live off the land. In Soviet times and still today, people have garden plots to toss a few seeds in and grow their own.

I've gone food shopping in a lot of countries, and the highest food prices are in the U.S., primarily to support the extravagant distribution system. However, very little of that price goes to the grower or the grower's laborers.

[Warpy]

7. Your last sentence is certainly correct.

[DainBramaged]

8. I am ALWAYS finding Arnold or Pepperidge Farm bread at $2 a loaf

an the good heavy stuff, always on promotion.

[Warpy]

9. How peachy for you

but it doesn't make it this far west.

One thing that threw me into culture shock out here was a convenience store with only Wonder Bread but a whole aisle devoted to different kinds of tortillas.

[DURHAM D]

2. I think the grounded farmer from Kansas is more correct than -

the guy from Colorado. I don't think the high this year will even equal 2008 prices.

[Swede]

3. Canada is having a horrible year for wheat production.

All we need now is for France to have a bad year,also.for a real disaster.

[MichaelHarris]

10. and the Palouse

where I live http://www.palousephoto.net/Photography/The-Palouse/6052198_CtY9R#601969852_fztzB