Ag News: Drought Hits Wheat Hard and Tariffs Hit California Trade
**Widespread drought has dampened expectations for wheat production and exports in the 2021/22 marketing year.
According to www.agrimarketing.com, in the Pacific Northwest, where most of U.S. white wheat is grown, a 29% year-to-year decline is expected, its lowest since the 1974/75 marketing year, with exports down 41%.
Hard red spring wheat is projected to fall 42%, its lowest level in over 30 years, and the lowest exports in over a decade.
Durum wheat is also projected to fall to its lowest level in 60 years.
**Tariffs as a result of trade disputes with China are continuing to impact a range of California farm products.
In particular, tree nuts and wine face increased duties, despite last year’s implementation of the Phase One U.S.-China trade agreement.
Meanwhile, tariffs on farm products have been suspended for exports to Europe under an interim agreement between the U.S. and the E.U.
**Fueled by strong commodity prices and continued pandemic assistance, farmland values are skyrocketing, up 14% in the central Midwest and 10% in the central Plains.
That’s according to the latest numbers from the Federal Reserve banks in Chicago and Kansas City.
www.agriculture.com reports, farmland values for the Seventh District climbed 14% year-over-year in the second quarter of 2021, the largest gain in eight years.
Values are expected to rise again in the third quarter.