Wheat Shortage in America and the World

wheat-shortages-drought-spainWhile I reported on the looming wheat shortage in detail several months ago, it has caught my attention again due to how quickly it’s coming upon us and how much worse it’s become.

A wheat shortage isn’t just confined to far off distant lands anymore.  It has definitely hit America.  

Additionally, there is not a single country in the world that is not experience a wheat shortage.

Nations all over the world are reporting a shortage of wheat.  Romania lost over two-thirds of their wheat harvest last year due to drought.  Hungary, Czech Republic and Bulgaria are all in the same boat.  Ukraine lost over a third of its harvest due to flooding.  This year Argentina is planting the smallest wheat crop in over a century!  They used to be the 5th largest exporter of wheat and now they will be consigned to importing it.  Zimbabwe’s largest bread producer has announced to the public several times in the last 2 years that they were completely out of flour or only had 2 days supplies left—and that is including their emergency reserve stocks.  Accounting for over 15 nations, wheat output has been declining over the last 2 years, while population has continued to increase.  Spain and Argentina have the largest declines of 48% and 34% respectively with Poland and Canada having the least output decline of 10% and 12%.

Can you say wheat shortage?

This is a common story among major bread manufacturers worldwide—nothing left in their stores.  Several processing plants that used to employ hundreds have literally had to shut down completely due to a lack of wheat—not money.  Wheat shortage.

The U.S. Government as a whole has a similar story as well.  In spite of laws which are still in effect to prevent this very crisis, the U.S. has exported ALL of their wheat surpluses to other nations simply so that they can survive and to prevent an even bigger economic meltdown.  In fact, though once the largest exporter of wheat in the world, the U.S. is now having to resort to IMPORTING types of wheat from other nations, paying top dollar to do so, which is obviously passed on to consumers.  In January of last year, the USDA reported that the hard wheat crop was smaller than EVER, thus forcing many buyers to spring wheat, which has escalated those prices to unprecedented highs.  Thus the price of wheat is skyrocketing due to supply and demand as well as a result of the value of the U.S. dollar.

Photo by AP Photo/Shakil Adil

Photo by AP Photo/Shakil Adil

Wheat is indeed a valuable commodity, much like gold and silver.  Since the U.S. dollar has weakened dramatically due to the excessive “bail outs” and money printing, lifesaving commodities such as wheat are being hyper-inflated.  This, in part, explains why countries such as Pakistan and China are storing wheat at record numbers even in an attempt of secrecy.  Armies aren’t just guarding weapons and gold anymore.  Many, even our U.S. forces, are guarding wheat supplies in foreign nations.  When money markets go awry, commodities such a meat, grains, and other lifesaving assets go up.

The credit eligibility of nations has been significantly downgraded as well—dramatically impacting the wheat shortage.  As a result, acquiring more wheat, seeds, appropriate amounts of fertilizer, etc. has become impossible for most nations.  Farmers in our own nation aren’t able to plant as much as in previous years to due to the tightening reign on credit and increasing taxes and export fees.

Can I say it any plainer, folks?  There is NO storage of wheat now except what is in your own home.  Take a look at your food storage.  How does that make you feel?  Safe?  Secure?  Or in need?

Is it any wonder that wheat has increased in price over 400% at the markets that I frequently shop?  World wheat prices are at record highs right now.

I have just received inside information from two chains that formal letters are being disseminated among grocery stores across the U.S. informing employees that wheat and affected prices will be doubling by the end of the summer.  Food prices in general have experienced the highest inflation rate of the past 18 years.

Unfortunately all of these problems aren’t just affecting the wheat market.  As a result, ALL grains are increasing in prices, some such as corn and rice to record numbers as well.  Markets are depleted in soy (expected decline of 26% this year) and corn (expected decline of 46% this year) all over the world.  Is it any wonder why China’s imported 55.2% more soybeans this year than last? And yet the U.S. crop of grains is down by over 19% this year!  This also affects the feed availability for meat production.  No feed?  Then the number of cattle and fowl output will decline substantially as well.

I’m thinking that you shouldn’t be waiting for wheat to come down in price before you obtain sufficient for your family—this includes any other grains as well such as rice, pasta, bran, etc.  Remember when I told you that I was convinced that a bucket of wheat would soon be worth more than a bucket of gold?  Do you now have some semblance as to WHY I would say that?

If you’re reading this, then you have been sufficiently warned, instructed, and encouraged.  You’ve seen evidence of wheat shortages.  You have no excuse to fail yourself or your family when a real food crisis hits your region.  You must take matters of survival into your own hands and stop being all comfy cozy and assuming that others will take care of you.  You cannot rely on the farmers to plant, on the truckers to transport, or the government to have a solution.  This isn’t to say that farmers, truckers, and government are “bad.”  They just aren’t superhuman folks.  They are HUMAN.  They can’t possibly be expected to take care of you.  Heck, some of your own parents who gave birth to you can’t even be expected to do that!  You need to take care of you, plain and simple.  Please, please get your grains now!  I assure you, a wheat famine is NOT pleasant to live through.

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Comments

What is a good price per pound for wheat at the current market? I can get it at whole foods for 99 cents a pound - the hard red wheat. If you get 25 pound bag, you rec 10% off. I know LDS is cheaper, but I'm not a member and the Houston cannery is not open to non-members. I've looked at Costco and Sams but they only have refined flour, which I purchased in large quantities. But I need more whole grains. When I look at Walton and other similar places, the shipping gets to be as much as the product. Thanks!

I keep BOTH in my storage. I would indeed have the kids pick some up at this price. It's only going to go UP with the shortage. Think about it this way. If gold were $40 and ounce and you KNEW it was going to go up, you would buy some, right? This is very much the same thing. The white wheat is high protein, low moisture. It's the good stuff!

Kris, I would check with some local farmers. You're right though. Paying shipping on wheat is NOT worth the cost. However, you could consider starting a bulk buying program for your area if you get enough folks interested. As far as wheat price goes, I'm sorry to say that I don't know. I buy mine at a local grocery store only and thus am only familiar with what their prices do. Guess I'm a major slacker now, eh? I've been getting 50 pound bags for $16.99 for red wheat or the 5 gallon bucket for $16.99 which is about 45 pounds.

Thanks, Kellene!

what area are you from

Wow! the cheapest I can get it is $23 for 25 pounds in the thick paper bag.

Which local shop are you getting them for 16.99 now? I haven't seen quite that price for a few months. I have a bit of wheat, but was planning on a few more buckets this spring anyways.

Sounds like yet another reason for you to come and visit me in Utah! :-)

Wow! $10. Amazing!!
Yup, Oklahoma has an expected reduced output this year of 17% at least.

Next hurricane, maybe you can be my bugout location:) I'll bring my pressure cooker.

Kellene-

You are right on the money about this wheat shortage. I have been all over this for the past year and a half. We currently have about 385 lbs stored up. I have been planning on going to the feed & seed store to buy another 200 to 300 lbs. I live in Oklahoma right in the middle of wheat country. I have been buying 50 lb bags of red winter wheat for $10. I haven't bought any in the last 3 months, so I am not sure what it is up to, but it will be going up. In the southern part of the state where the wheat harvest is beginning to gear up in earnest they are only getting 8-10 bushels per acre. THIS IS BAAAAD! ...Too much Spring rain... This isn't enough wheat to warrant harvesting it. They are just cutting it for hay. Once the harvest begins to move farther northward they may find the same thing. This would be a disaster.

Hope the Pressure cooker is working for you now...

I know little about the price of food, I do know however that the only real tangible wealth in the world is food, clothing and shelter. Gold,silver, diamonds all those things are nice, but will do nothing to secure one in times of a severe distress. Real wealth in desperate times is measures in tangible wealth only. So having these things on hand is definately a good idea. Thanks for visiting my blog TOTUS earlier. Allende was certainly a corrupt leader, but many in this country on the left supported him and were upset when he was over-thrown. Hollywood even made several movies putting his administration in a favorable light and his opponents were made out to be the vilians. Nothing new here, I guess.

Hi Kellene,
What do you know about the white wheat at Macey's in the buckets - what is the protein and moisture content? Hard WINTER wheat?
The Sandy store is having a sale right now and I am in Maryland.
Thinking of having the kids pick some up for us.

Hi Kellene

Whilst some of your fundamental comments are potentially correct, you maybe need to get a little bit more of a grip on what is really going on here. Yes wheat production is lower in 2009 over most of the world, but only because wheat production was a MASSIVE record high in 2008. Due to huge global prices, farmers the world over cashed in and planted record amounts in 2008 and largely had favourable harvests.

Now that prices are more in line with "normal" farmers have cut back on plantings to more like "normal" levels.

The real villains of the peace here are the large speculative funds who will buy wheat/oil or anything else they fancy for a short-term gain without any thought or compassion for what the consequenses of hugely escalting prices of these fundamental commodities do for the poor.

There IS enough wheat to go round, it is these massive corporate speculators who ultimatedly decide whether it's $10/bag of £20/bag, not the farmer or the government.

What we need is for governments to step in and stop these "in it for a fast buck" merchants from driving prices up simply to bank a profit.

And we've all seen what that can do in these and other markets the last twelve months.

Kind regards

Be sure to read the article today about being ready for a 90-day quarantine.

Are you telling me that the fact that we USED to have stores of wheat previously but no longer is now "normal?" Now if ANYTHING goes amuck in our wheat farming harvests, we are TOAST, with no back up. That's certainly not normal considering we've had stores of wheat for emergencies for centuries.
Countries which were p reviously LARGE exporters of wheat now HaVING to import wheat is not "normal?"
I'm sorry. But you truly are not correct if you think there isn't a shortage of wheat. See my other article about food shortage and you will see other facts that address this as well.
Indeed the financial markets play a villainous role here, but they do not create wheat where none exists. They do not control the weather that has wiped out wheat fields.
Yes, there is enough wheat right now IF you are willing to pay the price. However, we are guaranteed to experience a famine on wheat specifically, as well as other grains very soon. The point of my article is to stock up and prepare. In fact, that's the point of this whole site. Relying on a government in any form to "step in" as you put it is very idealistic and it places our abilities and independence in the hands of others. In the U.S. I never vote for a politician to feed me. I vote for them to enforce the constitution. That's it.
I believe your advice would have us simply get grumpy with the government for not doing their job correctly and ignoring any shortage that we have the ability to prepare for in our homes now.
That's just silly. Just plain silly.
I do sincerely thank you for your comments because it's likely that others may have thought the same thing and now I have the opportunity to address it.

You are absolutely off your rocker. I mean no disrespect, but there is an ABUNDANCE of information from all over the world that there is a shortage, not just in wheat, but in rice, produce, etc. Frankly, folks who would attempt to "calm" the prepper worry me more than those who fib about the shortage.

Great article! Just what I needed to convince my husband it was ok to take money out of our savings and finish purchasing our year's worth of wheat, rice & beans. Also hearing of new legislation that will hamstring FedEx's ability to deliver in a timely manner was another great push.

An additionally great reason to have your food storage -- swine flu. Swine flu is now (today) considered a pandemic by WHO. http://www.breitbart.com/article.php?id=D98N9T580&show_article=1 . Why go out if you can stay home at eat? :) Plus think of what you'll need to feed your kids once schools start closing down.

Kellene,

Nogger is correct. There is no shortage of wheat. I work in the grain business and watch the commodity markets all day long. It is true that the central states have had a couple less than ideal Hard Red Wheat crops but by no means does that mean we as a nation are going to run out of wheat. It is correct that in the spring of 2008 the HRW wheat markets were extremely tight and were supplemented by HRS wheat (some from Canada)but the 2008 harvest was a record crop in many parts of the country. As a matter of fact there was so much wheat harvested in 2008 that it recovered many of the stockpiles. Granted the Spring wheat and Soft wheat crops made up most of this gain in inventory but they can be blended to replace Hard Wheat at any point in time. There is so much 2008 wheat still in storage in places like Chicago and Toledo that a lot of wheat is being placed into the animal feed markets. To put a post on the internet telling people we are going to run out of wheat is at a best being a Fear Monger.

Lumphurst, I swear you sound like you work for the government. You're simply wrong, pure and simple. Wouldn't it be sad if folks listened to you instead of planning and preparing? Besides, even IF there wasn't a shortage of wheat, would that still be reason enough for folks not to have food supplies on hand in the event of an emergency? It doesn't solely take a wheat shortage for people to be in trouble and need to rely on their own preparations. Fear mongering. Geesh. I'm sorry, but I firmly believe that people like you are much more dangerous than someone like me who's trying to give real information on the facts. I suppose you think that our currency if perfectly valuable and strong; and that there isn't a serious depression about to hit the fan and that all is well with the world. Far be it for me to tell anyone otherwise.
As I've said previously, if I'm a fear monger, then the authors of the Bible are as well. Read it lately?

Just another update--Here is a message I received from one of the forums that I participate in. Up close and personal:

Many on this forum are aware of the White Wheat that I made available this last year from Three Forks Montana. Just for your information, I got a call a week ago from my supplier that a hail storm had gone through and wiped out the entire crop that would have been harvested this fall. Result NO NEW WHEAT. I am glad for those of you that got wheat from me, but do not look for me doing this again, I can't.

The 2008 harvest was good to very good in the U.S. and while it did not sufficiently restore our stockpiles, it did get us by. Wheat harvest is just finishing up in most parts of the U.S. for this year. There were less acres of wheat planted this year, but the harvest was again good to very good.
We are just getting by year to year on our wheat supply. One fairly small interruption or weather event and there will not be wheat to be had anywhere, except and hugely inflated prices.

hello fellow wheat lovers,
whats up dude

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