Falling wheat prices hit US farmers hard

Asociatyvi nuotr.

Farmers in the European Union, including Lithuania, are facing low grain prices, as are grain producers in the US.

Media reports suggest that American grain is losing out to wheat from the Black Sea region as costs rise.

On the global grain market, the US is the fifth largest exporter of wheat, but pressure from Ukrainian and Russian grain producers is pushing the Americans out.

First and foremost, this is due to the cost of transporting grain, which is incomparably higher in the US. Even local processors often opt for European agricultural raw materials, given the cheapness of European wheat.

The US Department of Agriculture (USDA) estimates that the fall in grain prices is expected to reduce American farmers' income by around $40 billion this year alone.