U.S. sorghum gets boost
The Oct. 30 trade agreement appears to have also boosted a popular High Plains export crop.
Sorghum before 2019 was a rising star and at times traded above corn on a per bushel price.
With China’s historical 65% tariff on corn imports, they can pay a premium for grain sorghum which only accrues a 3% import tariff. If the U.S. is able to gain a concession on China’s corn import tariff, it will have an impact on sorghum prices as well.
Guy Allen, a senior economist with the International Grains Program at Kansas State University, noted that had changed, particularly for sorghum as China for the most part only selectively bought sorghum. However, it is a grain the Chinese want. Sorghum is used for livestock feed and for a popular specialty liquor drink; “Baijiu”.
On Nov. 3, the National Sorghum Producers commended President Donald Trump, his administration—including the Office of the U.S. Trade Representative, the U.S. Department of Agriculture, the U.S. Department of Commerce and the U.S. Department of the Treasury—and congressional leaders following the president’s announcement that China has authorized the resumption of purchases of U.S. sorghum.
“The president’s meeting with President Xi, and sorghum being named, reflects sorghum’s importance to trade with China,” said Tim Lust, CEO of National Sorghum Producers. “Exports are vital to our industry, and today’s progress opens the door; however, we encourage the administration to finalize minimum purchase agreements with China of at least 5 million metric tons per year, reflecting the historical average of U.S. sorghum exports to the country. This will ensure consistent, reliable demand that provides long-term certainty for American sorghum growers.”
“We’re encouraged by this progress and look forward to seeing it translate into significant commercial sales in the days ahead,” said Amy France, chair of National Sorghum Producers and a farmer from Scott City, Kansas. “True success will come when we see shipments moving and grain flowing again from U.S. farms to our customers in China.”
Allen said Kansas is the largest sorghum-producing state in the U.S., so if China re-enters at its previous level of purchases that will help Sunflower State farmers. “We’ll see,” he said.
The announcement marks a critical milestone in restoring trade flows and expanding global demand for U.S. sorghum, the NSP said, which urges the administration to continue building on this progress by pursuing concrete, enforceable trade commitments that provide lasting market access and real stability for sorghum producers.
U.S. Sen. Jerry Moran, R-KS, said farmers need access to more products and China is an important ag customer and a destination for American-grown sorghum and soybeans.
“After years of drought and high input costs, farmers are struggling to make ends meet,” Moran said. “While crops across parts of Kansas did well this year, farmers need more markets to sell these crops. The president’s trade agreement reopens the door to China as a buyer of what we produce in Kansas.”
Dave Bergmeier can be reached at 620-227-1822 or [email protected].
