Brian D. Adam

Wheat breeding continues to be an important component of agricultural innovations in the Great Plains region of the US. This paper reviews Oklahoma’s wheat breeding program over the past several decades with an emphasis on the economic aspects and planning of future breeding strategies. Over the past century, Oklahoma’s wheat yields have increased but the productivity gains have been offset in part due to increased yield variability. The shift to improved wheat varieties has resulted in increased susceptibility to plant disease and pest pressure. While a few varieties introduced over the past few decades have dominated the wheat seed market, recent trends indicate producers are adopting a more diverse range of wheat varieties. Producers’ concerns have expanded beyond demands for high yielding varieties to include more market oriented needs to increase protein content and test weight. This paper identifies several key policy instruments that Oklahoma stakeholders and policy makers should consider when planning future breeding strategies. A critical need is to assist Oklahoma producers in adapting to climate change by developing drought and heat resistant wheat varieties. Marketing new varieties would be improved and revenue increased if more innovative pricing structures were adopted to better align producers’ willingness to pay with seed development costs, which could then be re-invested in breeding. Research budgets, which have remained stagnant in real terms, will need to be increased to adequately address producers’ needs into the 21st century.

The purpose of this paper is to determine the importance of the strength and weakness of basis, futures spread, and futures prices as barometers for producers to use in deciding whether to store or not. Basis is the most important market signal for wheat producers to use when deciding whether to store and hedge or sell their wheat at harvest.