Monday, November 15, 2010
Whats Wrong With This Picture
No, not the one above showing my neighbour's wheat and my tractor and house. I'm referring to the price of the wheat in the picture. I just got the returns for a semi load and a half of spring wheat and the results are less than inspiring. The gross price per bushel is $3.20 per bushel which I guess is not all that bad for #3 wheat (although I really question the grade as it is sure some nice heavy wheat.
The net price per bushel is a different story. By the time all the deductions such as elevation, rail freight, terminal cleaning, weighing and inspection, are taken into considerations, I end up with the princely sum of $1.70 per bushel. My Dad was getting that much for the same wheat back in the 1960s. True enough, theres a good chance the wheat board will have an interim and final payment coming to us later this year so it may look a little better then. But still, when over half the value of your grain is deducted by the "middle man" it makes me wonder why we are bothering to grow wheat .