Milling & Baking News - March 4, 2014 - 7

Editorial



Incentive for farmers to plant more wheat

or flour millers who typically measure their are data on relative yields of wheat and modified
economic progress in part by examining pro- maize. Thanks to the International Grains Council,
ductivity gains in the quantity of flour pro- data are available that underscore this point. In the
duced from a given amount of wheat, it probably first decade of the 21st century, world yield of wheat,
would be startling to be told that wheat farmers be- according to the I.G.C., increased 10%, from a globlieve their productivity gains largely have benefited al average of 2.72 to 2.98 tonnes per hectare. In the
millers and consumers, not growers. It is an econo- same time, the maize yield rose 15%, from 4.40 to
mist on the staff of France's Association Generale 5.07 tonnes per hectare. The maize advantage above 2
des Producteurs de Ble (wheat growers' associa- tonnes per hectare is more than sufficient to make up
tion) who declared this year that wheat farmers for wheat's per-tonne price, starkly explaining why
have not benefited from improved mechanization wheat is losing to modified grains.
and related productivity gains. "In general, producIf anything has compensated wheat farmers for
tivity gains in agriculture are passed on to proces- their relatively smaller yields as well as for the lesssors and consumers," the economist says. In mak- er gains, it is the performance of prices in recent
ing this amazing statement, the economist cites the years. Record high wheat returns, rivaling maize
way that falling inflation-adjusted wheat prices and other improved crops, were attained in many
during the past 25 years have prompted farmers to parts of the world. In turn, these encouraged inintensify searching for steps to
vestments that mainly focused
All that is needed to
reduce their costs.
on acquiring acreage rather than
understand what is
Without arguing about the
aiming for productivity gains.
means by which cost savings
One result of this single-minded
happening are data on
may be captured by producers
attention to boosting farm size,
relative yields of wheat and
of wheat, of flour or of anything
in North America and Europe
modified maize.
else, it seems extremely odd to
primarily and also in many deassert that little advantage lies in improving pro- veloping regions, was that attention to boosting
ductivity. Wheat millers in many parts of the world, yields of wheat captured the attention of only a few
including France, who have expressed serious con- bold commercial seed companies as well as research
cerns about the stagnant course of investing to units at state and federal government institutions.
produce more of the bread grain, believe that proSuch an outcome must not, in these times of
ductivity gains should stimulate planting. Blaming government austerity and budgets cuts, become
that problem on the failure of farmers to realize the the excuse for reducing investment in improvbenefits of improving productivity, as the French ing the wheat plant, not only to boost yield but to
economist hints, has the marks of fuzzy thinking address quality advances that will capture the fathat may accentuate these difficulties.
vor and demand of consumers. In addressing the
It seems much wiser to trace the lagging invest- doubts of a French economist about what encourment by farmers to boost wheat acreage to produc- ages farmers to produce wheat, attention also must
tivity shortfalls as compared with other crops where be turned to finding ways of boosting the attraction
genetic modifications have contributed to sharply of wheat to farmers as well as to consumers. Flour
increased yields in contrast with wheat's path. These millers, standing in a central role between growers
modified crops require heavy investment by farm- and consumers, have a huge stake in helping to reers in inputs that bolster yields. These are costs for solve these differences. This must be done in ways
equipment, for fertilizer and many chemicals that assuring that the future of wheat-based foods will
would not be undertaken without improving results. outstrip its past by a margin exceeding anything
All that is needed to understand what is happening reached before. MBN
MORTON I. SOSLAND, EDITOR-IN-CHIEF
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