US wheat farmers face zero profitability amid soaring costs

• Wheat profitability is currently zero for US farmers.
• Nitrogen fertilizer costs rose from 60 cents to $1 per pound.
• Fuel costs increased by approximately $1.50 per gallon.
• Kansas wheat production is down to 191 million bushels from a target of 300 million.

Gary Millershaski, chairman of U.S. Wheat Associates, stated that U.S. wheat farmers are currently experiencing zero profitability due to escalating costs for essential inputs like fertilizer and fuel. He attributed these increases to global conflicts, including Russia's invasion of Ukraine and tensions with Iran. Millershaski noted that nitrogen fertilizer prices have surged from 60 cents to $1 per pound, and fuel costs have risen by about $1.50 per gallon. The cost and availability of machinery parts and freight have also become significant challenges. Kansas farmers, who aimed to produce 300 million bushels of wheat, are projected to harvest only 191 million bushels this year, marking the lowest output in 25 years. Millershaski warned that the current economic situation is unsustainable and could lead to more farmers exiting the industry.