Europes farmers to sow wheat on set-aside land

Wheat is likely to be grown on much of the land returning to agricultural use this year after record prices for the commodity led the European Union to ditch rules keeping land out of production. "I think the main focus will certainly be on using set-aside for wheat production because of the remarkably high wheat prices we have seen in past months," one German analyst said.

EU agriculture ministers agreed on Sept. 26 to end a rule that farmers leave 10 percent of their land fallow, known as set-aside, in a bid to increase grain supply after shrinking stocks sparked a sharp rise in wheat prices.

The rule was introduced in early 1990s as the EU sought to reduce its grain mountains.

But rising world demand and weather-related crop problems in several key producing countries have seen the stockpiles evaporate and global wheat inventories are now at a 26-year low.

"I think the majority will be wheat, particularly as the announcement came so late. If the EU had decided in June or July it would have given farmers time to be a bit more adventurous," said Guy Gagen, chief arable adviser for Britain's National Farmers Union.