U.S. wheat plantings are about 30 percent lower than in the early 1980s. Wheat demand fell with changing consumer preferences and strong competition in export markets. Low returns led to the substitution of competing crops for wheat, particularly on the Plains. Farms depending on wheat sales for over half of their receipts have much lower farm incomes and financial assets compared with other farms producing wheat. These wheat dependent farms, which produce about 40 percent of the Nation’s wheat output, rely heavily on Government payments and off-farm income. In the future, attractive returns for competing crops and modest wheat demand are expected to limit wheat plantings. But low wheat stocks and prices above $3 per bushel will prevent a large decline in acreage.
