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SIC 0111 Wheat
Encyclopedia of American Industries
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2005
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COPYRIGHT 2005 The Gale Group, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group.
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SIC 0111
WHEAT
This industry consists of establishments primarily engaged in the production of wheat or whose sales of wheat account for more than 50 percent of total value of sales for their agricultural production.
NAICS Code(s)
111140 (Wheat Farming)
Industry Snapshot
Wheat farms in the United States produced an estimated 2.9 billion bushels of grain in the 2001-02 season, harvesting approximately 53 million acres with an average yield of 42 bushels per acre. Wheat is the third largest crop in the United States in terms of acres harvested, with Kansas, North Dakota, Montana, Washington, and Oklahoma harvesting the most. Season average farm prices (SAFP) for American wheat were projected to be between $2.75 to $2.85 per bushel and depended on an enormous range of environmental, political, economic, and technological factors. Although some wheat is used as livestock feed, it is largely used to make flour. The United States is the world's top exporter of wheat. In the early 2000s roughly 50 percent of total harvested crops were accounted for in exports.
Due to the importance of U.S. wheat in international trade and the integral role the U.S. Department of Agriculture (USDA) played in every sector of the agricultural economy, wheat farmers were in many ways more affected by shifts in the political climate than by actual weather conditions.
The U.S. wheat industry was also a world leader in research and development, a point underscored by the unparalleled variety of wheat grown by American farmers. While the Hard Red Winter (HRW) Wheat crop is much larger than other wheat crops (accounting for about 40 percent of the total wheat supply), there were five other commercial classes of U.S. wheat: Hard Red Spring (HRS), Soft Red Winter (SRW), White, Durum, and Red Durum.
Distribution, Production Conditions, and Use. Although wheat is grown in virtually every state, the focal point of the industry is in the central and southern Great Plains Region where Hard Red Winter Wheat is produced. There, in states like Kansas, Oklahoma, Nebraska, Texas, and Colorado, the winters are cold and dry, while the summers are hot. Precipitation, which varies over the region (between 13 and 30 inches annually), can fluctuate drastically, and droughts periodically afflict wide areas for a succession of years. Farms are generally large and employ extensive, as opposed to intensive, methods of crop production. Wheat farmers employ various systems of crop rotation depending on field soil moisture. Most often, farmers alternate a year of wheat with a year of fallow to conserve soil moisture, and HRW wheat is sown in late autumn and harvested in the spring. Wheat production is highly mechanized in the region. A farm worker can typically sow 100 acres or combine-harvest 50 acres in a workday. When milled, HRW wheat produces strong baking and high-quality bread-making flours.
The main region for Hard Red Spring wheat is the northern Great Plains region, where winters are too harsh for HRW wheat production. The soils are deep, rich, black or brown grassland soils. HRS wheat is usually sown in late April and harvested in August. On average, 80 percent of the annual 15 to 25 inches of rainfall comes during this short growing season. A great variety of crops are used in rotation with wheat, and summer fallowing is becoming rare except in the driest areas. The climatic and soil conditions give HRS wheat a high protein content, strong gluten, and high baking strength. Its flour is excellent for breadmaking and can support weaker flours when combined with them in breads.
The Pacific Northwest is the third significant American wheat-producing region. There, on the Columbia Plateau in the valley of the Columbia River, large areas of rolling farmland are protected by mountains, and the climate is moderated by the Japanese Current. Most of the wheat grown in this region is...
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