Agriculture

How is the world developing in the US? – AgFax

Examining the competitiveness of wheat production in different regions of the world is often difficult due to the lack of comparable data and agreement on what needs to be measured. To be useful, international data must be expressed in common production units and translated into a common currency. In addition, production and price measures must be consistently determined in different production regions or farms.

This paper examines the competitiveness of wheat production for important international wheat production regions using data for 2016-2020. a landmark for agriculture networks. The previous article considered the international benchmarks for the period from 2015 to 2019. The a landmark for agriculture The network collects data on beef, commodity crops, dairy products, pigs and poultry, horticulture and organic products.

The network of marketable crops includes 21 countries with data on wheat for 2020. The a landmark for agriculture The concept of typical farms has been developed to understand and compare modern farm production systems around the world. Participating countries follow a standard procedure for establishing typical farms, which represent the share of products of national farms and are classified by production system or combination of enterprises and structural features. Expenses and income are converted into US dollars so that comparisons can be made easily.

Data from ten typical farms with data from wheat enterprises from Argentina, Australia, Canada, Germany, Russia, Ukraine, and the United States were used in this paper. It is important to note that data on wheat enterprises are collected from other countries. These seven countries were selected to facilitate illustration and discussion.

Abbreviations of farms and countries used in this article are listed in Table 1. All farms had data for each year from 2016 to 2020. Although farms can grow different crops, this article only discusses wheat production. Typical farms used in c a landmark for agriculture networks are defined using country initials and acres on the farm.

To fully understand the relative importance of a wheat grazing plant in each typical farm, it is useful to note all the crops produced. A typical Argentine farm produced corn, soybeans, sunflowers, winter barley and winter wheat in 2020. Wheat was produced on approximately 43 percent of the area of ​​a typical farm over a five-year period. A typical farm in Australia produced malting barley, pasture, winter oilseed rape and summer wheat. Wheat was produced on about 41 percent of typical farmland.

A Canadian farm in the Red River Valley produced corn, canola, soybeans and spring wheat, with wheat occupying 26 percent of the farm’s area over a five-year period. A conventional farm in Saskatoon produced rapeseed, peas, and spring wheat, with wheat accounting for approximately 43 percent of the farm’s area over a five-year period.

The German economy produced winter barley, sugar beets, corn silage, winter oilseed rape, and winter wheat. In five years, 53% of typical farmland has been sown with wheat. The farm in Russia in 2020 produced alfalfa, summer barley, chickpeas, corn, corn silage, fodder grasses, soybeans, sugar beets, sunflowers, winter rye, winter wheat. five-year period.

Smaller farms in Ukraine produced corn, winter oilseed rape, soybeans, sunflowers and winter wheat, with wheat accounting for about 42 percent of typical farmland over a five-year period. In 2020, large farms in Ukraine grew corn, winter oilseed rape, soybeans, sunflowers and winter wheat. In five years, wheat was harvested on about 17 percent of typical farmland.

The network includes five American farms with wheat. This study presents typical farms in North Dakota and Kansas. A typical North Dakota farm produced corn, soybeans and summer wheat in 2020. Wheat was produced on about 20 percent of the area of ​​a typical farm over a five-year period. A typical Kansas farm produced corn and winter wheat. In five years, wheat was harvested on about 36 percent of typical farmland.

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Wheat yield

Although yield is only a partial measure of productivity, it reflects existing production technology on farms. The average yield of wheat in farms in 2016-2020 was 4.48 tons per hectare (66.7 bushels per hectare). Average farm yields ranged from approximately 1.83 metric tons per hectare (27.3 bushels per hectare) for a typical farm in Australia to 8.32 metric tons per hectare (123.7 bushels per hectare) for a typical farm in Germany.

Figure 1 shows the average wheat yield for each typical farm. Farms in North Dakota and Kansas had average yields of 59.6 and 43.8 bushels per hectare (4.01 and 2.94 metric tons per hectare, respectively).

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Share of input costs

Due to differences in technology introduction, resource prices, fertility rates, farm operators’ efficiency, trade policy constraints, exchange rate effects and labor and capital market constraints, resource use varies across different wheat farms. Figure 2 shows the average fractions of the input cost for each farm. The share of costs was divided into three main categories: direct costs, operating costs and overheads.

Direct costs included seeds, fertilizers, plant protection, crop insurance and interest on these cost items. Operating costs included wages, depreciation and interest, contractor cost, fuel and repairs. Overheads included land, depreciation of buildings and interest, property taxes, general insurance and other expenses.

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The average share of input costs was 34.3 percent for direct costs, 39.6 percent for operating costs and 26.1 percent for overhead costs. Typical farms in Germany, Russia and Ukraine had a share of below-average costs for direct costs, which include the costs of establishing crops related to seeds, fertilizers and pesticides.

Typical farms in Argentina, Canada, Germany, and North Dakota had a share of below-average costs for operating costs. Labor costs as a share of total costs were relatively higher for typical Ukrainian farms. Overheads as a share of total costs were relatively higher in Argentina, Germany and North Dakota. In general, overhead is determined by the cost of land.

Income and expenses

Figure 3 shows the average gross income and expenses for each typical farm. Gross income and expenses are shown in US dollars per hectare. Figure 3 shows that gross income per hectare is much higher for a typical farm in Germany. However, the cost for this farm is also much higher. Typical farms in Argentina, the Red River Valley region of Canada and Russia have shown economic gains over a five-year period.

The smallest typical farm in Ukraine essentially broke down even during the study period. Ukraine’s largest typical farm had an average loss of $ 100 per hectare. Average losses per hectare for typical farms in Australia, Saskatoon, Germany, North Dakota, and Kansas were $ 18, 18, 56, 55, and 103 per hectare, respectively, over a five-year period.

The lowest economic profit in five years for typical farms was in 2019 with an average loss of $ 80 per hectare. The average loss in 2020 was $ 79 per hectare. Average economic returns were positive for 2016, 2017 and 2018.

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Figure 4 shows the average gross income and the cost of wheat per tonne. Gross revenue per tonne was relatively higher for typical farms in Australia, Canada, Germany and the United States. However, typical farms in Australia, Saskatoon, Germany and the US also had the highest costs per tonne. Economic returns for the five-year period were the highest for a typical farm in Russia, followed by economic returns for typical farms in Argentina and the Red River Valley region of Canada.

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Conclusions

This article looked at yields, gross income and costs for farms a landmark for agriculture network from Argentina, Australia, Canada, Germany, Russia, Ukraine and the US with data from wheat businesses. The German economy had the highest yields. However, for the period from 2016 to 2020, this farm had an average loss per ton of $ 7. Typical farms in Argentina, the Red River Valley region of Canada and Russia showed positive average economic returns between 2016 and 2020.

Typical farms in Argentina and Russia, as well as the largest typical farm in Ukraine also had data on maize and soybean enterprises for the period from 2016 to 2020. For a typical farm in Argentina, wheat was more profitable than soybeans, but less profitable than corn. For the Russian economy, wheat was more profitable than both corn and soybeans. For the largest typical farm in Ukraine, wheat was much less profitable than corn or soybeans.

Michael Langemaer and Lane Zhou

https://agfax.com/2022/05/13/wheat-how-does-u-s-production-stack-up-globally/ How is the world developing in the US? – AgFax

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