On RFD-TV: Cory Walters | Winter Wheat
Characteristics of hard red winter wheat can vary from variety from variety, and some are higher quality and better suited for milling and baking than others. University of Nebraska-Lincoln agricultural economist Cory Walters and several colleagues aimed to find out if farmers who produce higher quality wheat receive a higher price for their product. Walters talked live to RFD-TV, May 24, 2022.
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[00:00:00.330]About 36% of US wheat is hard red winter wheat, which
[00:00:04.410]can be milled and baked into bread.
[00:00:06.810]University of Nebraska ag economists are finding out
[00:00:09.600]whether farmers who produce this higher quality wheat
[00:00:12.690]receive a higher price.
[00:00:14.550]Cory Walters joins us now for an update.
[00:00:16.980]Thanks for joining us, Cory.
[00:00:18.300]So what were the findings?
[00:00:19.590]Do farmers receive a higher price for higher quality?
[00:00:25.860]The short answer is yes.
[00:00:27.150]But indirectly, a little bit of background, when when
[00:00:30.930]farmers deliver their wheat, they do get some great
[00:00:34.890]factors for quality on that settlement sheet. And on
[00:00:38.550]top, there's some some fixed ones.
[00:00:42.000]And then some elevators also add a couple in there,
[00:00:44.580]like protein and falling numbers.
[00:00:48.030]So when those things are favorable to those quality
[00:00:53.400]characteristics, the farmers will get a higher quality
[00:00:55.560]or higher price for that wheat.
[00:00:58.140]And essentially, we wanted to look at whether there are
[00:01:01.080]some other factors, specifically, milling and baking
[00:01:04.080]quality characteristics, see if they're paid for those.
[00:01:06.870]So talk about the characteristics that they're actually
[00:01:09.300]looking for overall, what are some of those, that is it
[00:01:12.720]all about the milling and the baking?
[00:01:16.890]In this study, yes, that's what we were we were looking
[00:01:19.560]for, because that was kind of the original idea that
[00:01:22.560]farmers were thinking they weren't being paid for these
[00:01:26.670]But let's go into a milling one, let's go with oh, with
[00:01:34.770]kernel size, so when there's a larger kernel, then then
[00:01:38.580]they get more more, more great flour out of that thing.
[00:01:42.420]And then on the baking side, when crumb and texture and
[00:01:46.260]those sorts of things, they also impact the quality or
[00:01:49.230]the baking side of that.
[00:01:51.090]So kernel size and weight really determines I mean,
[00:01:54.030]obviously you're gonna get more flour wheat right when
[00:01:56.790]it's milled, so that really plays a part in these
[00:01:59.730]So when you're looking at these settlement sheets, do
[00:02:03.360]they have to have more characteristics then added to
[00:02:06.000]Is baking and milling? Is that all part of it and how
[00:02:08.850]it affects a bread?
[00:02:12.870]Yeah, that's what we were we were trying to find
[00:02:15.060]whether whether that those ones that aren't being
[00:02:17.580]shown, the baking and milling that aren't aren't being
[00:02:20.370]shown on those settlement sheets are actually showing
[00:02:23.760]up on the farmers pocketbooks.
[00:02:25.740]And that's essentially what we what we did find that
[00:02:28.830]they are but but it's not done through actually testing
[00:02:32.610]for those on the farmers settlement sheets.
[00:02:34.590]It's done at a more of a aggregate level where the
[00:02:39.360]millers and bakers come in and look at what the quality
[00:02:42.750]is in a region and then they bid for that grain in that
[00:02:46.740]region looking looking for those milling and baking
[00:02:51.270]So this is yeah, so this is good news for farmers
[00:02:54.330]they're paid. We're advocating for for this to be shown
[00:02:57.690]actually on the settlement sheet.
[00:02:59.280]So that then we can increase market transparency so
[00:03:02.610]farmers can see what they're being paid for.
[00:03:06.000]Absolutely great insight.
[00:03:07.000]Thank you so much University, Nebraska-Lincoln,
[00:03:09.640]agricultural economist, Cory Walters, we appreciate you
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