Agricultural News
Chandler Goule with National Association of Wheat Growers says High Input Prices Cancel out Historically High Wheat Prices
Fri, 22 Apr 2022 13:23:55 CDT
Ron Hays was able to catch up with Chandler Goule, CEO of the National Association of Wheat Growers at the National Association of Wheat Growers Training and talk about the upcoming 2023 farm bill and other present challenges in the wheat industry.
"I sit on the Ag CEO council as a co-chair and we just met with Secretary Tom Vilsack about 2 or 3 weeks ago, looking at continued issues, not only with Covid and supply chain and elasticity we have in our food system," Goule said, "but also the overflowing impacts that the Russian-Ukraine war is having on the growing season here in our U.S. wheat growers, as well as the continued winter drought."
Between the USDA, the EPA, and supply chain issues, Goule said there is still a lot to cover in Washington D.C.
"It is really hard right now," Goule said.
One of the main things Goule said he hears in D.C. is with historically high wheat prices, is U.S. wheat growers must be making money.
"Actually, that couldn't be further from the truth," Goule said. "With the increased cost in input prices, fertilizer, fuel, and the fact that we are also not selling wheat right now and having to explain that 70% of our wheat is winter wheat and is already in the ground, and it's going through a drought."
Goule said it is critical that D.C. and the general public understand that with the way our production system is set up, the 10-dollar wheat we are seeing right now is not actually getting back to the individual wheat grower here in Oklahoma or anywhere else in the U.S.
"Even though we are having these high prices right now, I really think we are going to struggle to get a farm bill done in 2023," Goule said. "Not only because of the funding issue and the price issue, but it is also an election year."
In his opinion, Gould said they are six months behind schedule on the 2023 farm bill.
"This should have started back in January," Goule said. "Since we didn't start until basically April having these hearings, I don't see how you have enough hearings and draft the bill and pass it all by September 30th of 2023."
On top of the late start date, there is also the possibility that one or both chambers could change majority hands.
"That could definitely change the dynamics, the priories- everything," Goule said. "So, all the work that has been done between now and the election could almost be completely undone, and you would have to start back over if one of the chambers does go to the republican party."
Looking at the farm bill, Goule said producers are most concerned about crop insurance, equity, and title one.
"We would also possibly like to see some new research on new uses for wheat besides for feed and fuel, so we can help increase our margins and demand within our own industry," Goule said.
To hear more of Ron's conversation with Chandler Goule about more challenges in the wheat industry today, click the LISTEN BAR below.
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