01/19/09 Idaho winter wheat

The USDA Office in Idaho just reported that Idaho's winter wheat seeded area for the 2009 crop are estimated at 740,000 acres which is down 13% from the 850,000 acres seeded for 2008 crop. According to Bill Meyers of the USDA office, this does not signal any potential problem or crisis with wheat&it is a correction that reflects market conditions for wheat as well as other crops that may be more profitable. (Meyers) " In fall of 2007, wheat prices were quite high and everyone was jumping on the wheat bandwagon and steering away from some potato acreage, sugar beet acreage, because those were risky crops and they thought they'd have a surer thing with the wheat. This year the wheat has come back down and people are looking more at going back to potatoes and sugar beets. Wheat last April was up by $11/bushel but now it's down to $7/bushel and potatoes price has remained relatively strong, sugar beets, the companies are looking for more acreage. This years winter wheat acreage is a more normal level. Two years ago we were at 750,000 and 2006 we were at 750,000, so this is a more normal level."