Wheat prices run "First Silo" into the ground, but put 200m euros in farmers' pockets

Autori: Iulian Anghel , Cristina Stoian 26.08.2010

This year's high wheat prices have run one of the main anti-crisis measures of 2009, "First Silo", into the ground, at least this is what the Agriculture Minister, Mihail Dumitru is saying.
Producers do not want, he says, to store their wheat and prefer to sell it at prices that can go as high as 200 euros per tonne.
According to producers, Romania has already exported 1.2 million tonnes of wheat out of the 5.7 million produced this year, meaning that against an average price of 170 euros/tonne on international markets, exporters have collected over 200m euros.
The "First Silo" programme is not attractive this year, says the Agriculture Minister. "The programme is underway, but in the years when agricultural product prices are very high it is not an attractive programme".
It is not functional in 2010, but has it ever been? Large producers say it has, while small producers' answer is negative.
However, the programme is intended for the entire agricultural yield, not just wheat. "The programme will be an opportunity primarily for sunflower and maize," says Ştefan Poenaru, owner of Agrofam Holding of Feteşti.