Soybean production is tentatively projected at 2.8 billion bushels, up 3 percent from last year's record. Agriculture Secretary Dan Glickman told reporters the low prices in wheat, soybeans and other crops demonstrate the need for some changes to the 1996 farm law that is phasing out the old subsidies, which paid farmers when prices are low. Glickman wants a reluctant Republican-led Congress to allow him to remove caps on loans to farmers, extend commodity loans another six months and pay farmers certain subsidies a few months in advance. You have to have some kind of support system there. Kansas, the leading winter wheat state, expects a crop of about 377.4 million bushels, down from 506 million bushels in 1997.
Winter wheat is harvested in spring and summer and is primarily used to make bread.
Three-quarters of the winter wheat crop rated good or better as of May 3, its best condition at this stage of development since 1993. Including spring wheat just now being planted, total U.S. wheat production this year is projected at 2.3 billion bushels, a 7 percent drop from last year. Despite the lower crop estimate, prices will remain depressed because more wheat remains in storage from last year and export demand is weak. At the same time, U.S. growers face a strong challenge from the European Union. The early corn outlook, based on farmers' planting intentions, is for a harvest some 275 million bushels larger than last year's and second only to 1995's 10.1 billion bushels.