After many years of drought and low prices (see the Figure), wheat producers have enjoyed historically high prices and average or better yields. Is the relative era of prosperity likely to continue? Important factors influencing the success of wheat producers will include:
- The proportion of CRP acres that return to wheat production. In Colorado, expiring CRP contracts mean that more than 1.1 million acres may be planted to wheat in 2009 and 2010.
- What do increasing petroleum and natural gas prices mean for wheat cost of production?
- Will irrigated wheat out compete corn for irrigated acres in Colorado?
- Will private capital be invested in improving wheat varieties?