Spring seeded durum acreage is up 10 percent in the United States, with growers taking advantage of a higher loan rate subsidy.
International durum prices are down because of burdensome stocks, prompting Canadian growers to cut durum acres this spring. The Statistics Canada report based on farmers’ expectations in late May said that durum area would drop 38.3 percent.
But this spring, U.S. loan rates for the 2010 crop were set higher than $6 US a bushel in the durum growing states of North Dakota and Montana.
That’s about $1.50 higher than the 2009 rate and well above the U.S. elevator price of $4 per bushel.
The US. Department of Agriculture seeded acreage survey report released Wednesday showed durum area in North Dakota, Montana and South Dakota climbed to 2.45 million acres, an increase of 10 percent over last year.
The Canadian Wheat Board has said the American increase will lessen the global stock reduction that low prices should have triggered.
