It is kinda' odd that they didn't hold on to their wheat.
I mean, what is money to them? They sold it for cash?

That is odd to me. Money doesn't even exist to them anymore. It is just a farce. Seems to me that if they sold the reserves it is because they simply don't want them.

Creating a problem.

Isn't US 4th top wheat producer in the world and 1st exporter? If i was US citizen i would not panic. Of course politicians should answer why reserves are used. But even in event of a crisis i do not see wheat shortage in US.

I searched around and it seems clear that only, blogs and alternative media make references to this situation.

While I have no delusions of success, I wonder what our beloved leaders will say, if and when someone is allowed to ask this question and have it answered publicly?

By the way, a 'substantial' official source for this article is is lacking everywhere I look. I don't expect the information to be false, since the depletion has not gone unnoticed over the preceding months; but the lack of public commentary is telling of the value of a 'free' press.

All we need now is to be told of the problems we are having growing wheat... and the meme of fear relating to famine will be well-established.

Did any of you read the date on that letter? It's dated 1 year ago...

Also this was up and about back then here on ATS, but somehow faded. I guess people weren't missing wheat all that much anyways...... eh?

Up to 4 million metric tons of U.S. wheat, corn, sorghum, and rice can be kept in reserve. As of Jan. 15, 2006, the Emerson Trust held about 915,000 metric tons of wheat and $107 million in cash. The cash can be used to administer activities or to purchase commodities not held in the Trust.

The reserve was originally authorized by the Agricultural Trade Act of 1980 as the Food Security Wheat Reserve. Subsequent legislation broadened the number of commodities that can be held in the reserve and, in 1998, it was renamed the Bill Emerson Humanitarian Trust. The Farm Security and Rural Investment Act of 2002 reauthorized the Emerson Trust through 2007.

Guidelines for Release: The Secretary of Agriculture is authorized to release commodities from the reserve to meet unanticipated emergency needs that cannot otherwise be met under Title II of P.L. 480, the U.S. government’s major humanitarian food aid program. Each fiscal year, the Secretary can release up to 500,000 metric tons, plus up to another 500,000 metric tons that could have been, but was not, released in prior years. The Secretary is also authorized to release eligible commodities for use under all titles of P.L. 480 if domestic supplies of those commodities are determined to be in limited supply and would not meet the availability criteria of P.L. 480.

All commodities in the reserve and all donations made using the reserve are U.S. commodities.

Guidelines for Replenishment and Reimbursement: The Commodity Credit Corporation (CCC) may be reimbursed for the value of U.S. commodities released from the Emerson Trust from either P.L. 480 appropriations or direct appropriations for reimbursement. The CCC may then use that reimbursement to replenish commodities released. Direct appropriations may also be used for replenishment. Reimbursement to the CCC for ocean freight and related noncommodity costs occurs through the regular USDA appropriations process.

We have plenty of everything...this is America.

Having it used up is a good thing. Having this stuff sitting in a silo rotting is a bad thing. If we have reserves then we should help other nations that are having trouble. That is the right thing to do. Do we really need more bread when our waist line is already bursting at the seams and most have not seen their feet in decades?

[edit on 1-8-2009 by cloakndagger]

Well, this may explain a few oddities I've heard recently.

All of the stores in my area have been limiting bulk rice & grain purchases to 50lbs per family per week. Apparently this must be a Distributor based thing because all of the restaurants in my area have been screaming about the rice & grain rationing adversely impacting their ability to do business.

Even though we are a large producer of wheat we do have Farm Subsidies to protect farmers when the value of particular crop falls below commodity rates we pay the farmers to destroy that crop that they've grown.

In the past 10 years Wheat Subsidies have grown higher than corn, oats and barley which have traditionally been the highest recipients of Farm Subsidies. The US has drawn international criticism, even from Canada, Australia, the EU, and the WTO for the "Strategic Subsidies" the U.S. Export Enhancement Program (EEP) has been giving to Wheat Farmers to artificially inflate Wheat Prices on the International Market.

The U.S. routinely provides in excess of $1,000,000,000.00 a year to Wheat Farmers alone to destroy their wheat crops.

For the fact that we are the 4th largest producer of wheat, but the number 1 exporter of wheat, this all of a sudden makes sense, especially in the current Economic Crisis.

Last year the U.S. exported 27.6 million metric tons (MMT) of wheat, which is about 41% of what was produced in the U.S. World trade in 2008/09 was 136 MMT so the U.S. accounted for nearly about 20% of all the world's wheat exports. By comparison, in 2007/08, the U.S. exported 34 million metric tons, comprising 30% of world wheat exports.

So, last year our Market Share dropped 10% and we exported 6.4 million metric tons of less wheat than the year previous. This year, our exports of wheat to date have dropped dropped 47% from last year. That's less than 12 MMT!

To keep the amount of Revenue from Wheat Exports the same as it was in 2007/08, the U.S. strategically creates an artificial shortage of Wheat in 2008/09 by boosting Wheat Subsidies to U.S. Wheat Farmers who must destroy their crop. This costs the U.S. @ $1,000,000,000.00 but increases the value of our Exports significantly to where the remaining wheat that we have to Export is still valued at $16,000,000,000.00. As demand for our Wheat Exports in 2009 has fallen 47% we need to boost the value 47% to make the same.

To any skeptics that this strategically forced Wheat Shortage isn't having an effect, just since that article posted by the OP was released, the value of U.S. Wheat Exports have reached $5.30/bushel, or a 2.3% gain in value in just 7 Trading Days! The more pronounced the Wheat Shortage becomes, the higher in demand it will become and the value will continue to increase.

This is the same old U.S. Economic Protectionism we have played for the past 10 years in the Wheat Market.

What it means to us is that

a.) Wheat prices will be at an all time high in the U.S. meaning a loaf of bread will be unbelievable in cost.

b.) consumers *WILL* feel the wheat shortage because there really is one, albeit artificially manipulated by the USDA and the U.S. Export Enhancement Program. The more consumers feel the shortage and panic, the higher it will drive up the value of wheat.

Didn't they also get rid of a lot of the excess grain (especially corn) by making the addition of ethanol to fuel mandatory?? I thought farmers were only allowed to plant a certain number of areas in each grain crop, I did not know the USDA payed to have the drop destroyed! Thanks for the info.