Russia's Grain Price Downturn Forces Farmers to Adapt

Russian farmers are facing significant economic pressure due to low grain prices in their regions. In areas such as Voronezh and Kursk, buyers are offering around RUB 6-8/kg for wheat and barley, equivalent to about $71-94/t, which is lower than production costs of RUB 12-13/kg or approximately $141-153/t.

This has led some farmers to delay crop sales, while others are forced to sell at current prices due to debt burdens. Livestock producers, however, are taking advantage of the situation by diverting grain into feed, which can be more profitable than selling it at low prices.

Some farms are expanding beef production to partly offset weak returns from crop farming. Additionally, low grain profitability is affecting planting plans, with one farm in Kursk region deciding not to sow wheat next season. Producers are also considering cutting spending on field treatments, fertilizers, and crop protection products.