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Business

German Wheat Stocks to Grow

Germany may see increased subsidies for its wheat as the country's stockpiles swell by 35 percent in 2005-2006, a U.S. government agricultural official told Bloomberg News Agency. Germany is the third-largest wheat grower in Europe. The growth could prompt the European Union to double its subsidies for the grain. Larger surpluses of wheat, barley and other cereals in Germany mean the European Commission could increase its purchases of the grain to buffer farmers from falling prices. The commission pays above-market prices for the grain, and then sells it back to the market at prevailing prices.

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