USA: Idaho surpasses North Dakota as nation’s leader in barley production

North Dakota' role in leading the nation in barley production has been snatched away by Idaho this year and the contest wasn't even close, Farm & Ranch Guide reported on October, 21.

The USDA' National Ag Statistics Service Annual Small Grains Summary that was released Sept. 30 shows total barley production in North Dakota at 16.45 million bushels, a distant third place behind Idaho' total of 46.0 million bushels and the 31.0 million bushels grown in Montana.

Nationwide, barley production in 2011 is estimated at 155 million bushels, down 14 percent from 2010 and the lowest crop totals since 1936. This production came from 2.56 million planted acres, which was down 11 percent from 2010 and the lowest on record and harvested acreage totaled 2.24 million acres, down 9 percent from 2010 and the lowest level since 1881.

"The barley acres in North Dakota were definitely hurt by the prevented planting," said Andy Swenson, farm and family resource management specialist with the NDSU Extension Service. "And to get those acres back the prices will need to be high enough to project some competitiveness with the other crops when they work out their crop budgets.

"I've seen some of the barley contracts out there and they are really pretty good, so I expect their acreage will rebound in the state."

The nation' barley crop had an average yield of 69.2 bushels per acre, a decline of 3.9 bushels from last year. Producers in North Dakota, Minnesota and Montana, also saw a significant drop in average yields, according to the NASS report.

For instance North Dakota's crop averaged 47 bushels per acre, down from 65 bushels in 2010, while Montana experienced a 12 bushel drop going from 62 bushels last year to 50 this year. Minnesota had an 11 bushel per acre decline putting this year' average at 51 bushels per acre.

It' no surprise that with the short crop the barley stocks continue to fall as well. In North Dakota, barley stored in all positions as of Sept. 1 totaled 40.3 million bushels, a decline of 39 percent from last year. On-farm stocks were pegged at 19.5 million bushels compared with 43.0 million last September, while off-farm stocks were off 12 percent to 20.8 million bushels.

Barley disappearance from the June-August quarter totaled a record low 8.53 million bushels, down 61 percent from the same period last year.

The U.S. supply of barley was down 22 percent from Sept. 1 last year, totaling 174 million bushels. The June-Aug. national disappearance for barley was pegged at 70.0 million bushels, a 3 percent decline from the same period a year ago.

In the Oct. 14 USDA Feed Outlook Report projected barley use is lowered 10 million bushels from last month due to reduced feed and residual. Ending stocks for 2011-12 are lowered by 3 million bushels to 54 million and are down 35 million from last year.

Barley prices were reduced by 15 cents on the low end or the range and 25 cents on the high end of the range to $5.30-$6.30 per bushel, compared with $3.86 in 2010-11. Higher expected prices year-to-year reflect stronger feed grain prices generally and steady malting barley demand.

However, at the present time the short crop this year coupled with the declining barley stocks have kept barley prices steady while other grain prices have fallen in the last couple weeks. Cash board prices for feed barley at local elevators is averaging around $4.80 per bushel and cash malting barley prices are pegged at $6.75. New crop contracts are generally in the vicinity of $7 with an act of God clause included as part of the contract.

26 October, 2011