USDA Attache: Bosnian Winter Wheat Area To Fall 10%

The planned winter wheat area in Bosnia and Herzegovina is approximately 57,700 hectares, 10% down from the previous season. The main reason for this decline is that grain production is less profitable than other crops, according to a U.S. Department of Agriculture attache report posted Wednesday on the Foreign Agricultural Services Web site.

The Entity Ministries of Agriculture unofficially reported that 2009/2010 planned winter wheat area is 57,700 hectares (ha), which is 10% lower than the previous season, when the total what area was 64,644 ha. The main reason for this decline is that grain production is less profitable than other crops and because of that grain production is constantly decreasing in the last several years. In addition, the planned wheat area may further decline because approximately one-third of corn is still not harvested due to unfavorable market conditions and limited corn storage capacity.

Corn was sown on 202,650 ha and an average yield is 4 MT/ha, with the total production of approximately 800,000 MT. It is yet unknown how much of produced corn will remain on the field because due to the current low corn price on the market farmers consider harvesting as a potential loss.

According to farmers' associations, the Entities' Governments failed to intervene properly in assisting producers with corn surpluses. The quantity of corn that is intended for purchase from farmers and storage at the commodity reserves, as well as the price offered, is far below farmers' expectations. This will surely negatively affect the 2009/2010 corn production.

Barley

Total planned winter barley area is approximately 10,000 ha. Presently, only 60% to 70 % of planned barley area has been sown because of corn that is still on the field.

-By Angie Pointer; Dow Jones Newswires; 312-750-4075; angie.pointer@dowjones.com