Henan province, China’s leading wheat producer, announced this week that it will be allocating 100m yuan ($16 million USD) to help control wheat scab and stripe rust diseases.
Wheat prices in China have been firm recently. In Zhengzhou, the capital of Henan, prices have risen by 7.9% in the past three months to 2,860 yuan/ton ($452 USD/ton).
In Hubei province, the Ministry of Agriculture recently sent teams to inspect current wheat situation.
They reported that 92% of the crop is rated in first or second condition, up 5% compared to last year. Wheat ratings in China have three tiers with first class being above average, second class being average, and third class being below average.
The team noted the disease pressure from rust and scab would remain severe and urged farmers to pay close attention to wheat diseases and treatments.
They also recommended fertilizer applications to fields that were underperforming.
Based on higher fertilizer costs over the past year, those fertilizer applications would be 137-167 yuan/hectare more expensive compared to a year ago.
Cash prices in Hubei have risen as well recently, with some areas up 11% in the past year. If a farmer is getting an average yield, then the increase in prices should more than cover the additional cost of fertilizer.
However, if farmers are not optimistic about a field, they might be less willing to spend that additional money or might cut back on fertilizer applications.