In a statement released from the Kansas Wheat Commission, temporary tariff changes have allowed significant sales of hard red wheat (HRW), much of which is produced in Kansas. This comes as the Southern Hemisphere has seen a shortage of wheat and sought the wheat to be imported from the United States.
“Any time we can have more market access and reduce tariffs, it is a positive for U.S. farmers,” said Scott Van Allen, Kansas Wheat Commissioner from Clearwater, Kansas. “We always strive to deal on a level playing field. U.S. farmers can compete with just about anyone on a farmer to farmer basis but we can’t compete with foreign governments.”
Although much of the imported wheat in Brazil has been purchased from Argentina, the location of southern U.S. ports is approximately the same distance from Northeastern Brazil as the Argentinian ports. With the reduction of the tariff, the cost of shipping wheat became essentially equal.
The statement further reads, “As the nation’s leading producers of HRW wheat, Kansas wheat farmers are benefitting significantly from Brazil’s recent tariff change. Consistent market demand form one of the world’s largest wheat importing countries would see even more U.S. wheat sales to Brazil if that temporary opportunity becomes permanent law.”