China initiated an antidumping and countervailing duty investigation of United States sorghum, and the action caught the eye of the Kansas Gov. Jeff Colyer as his state is the country’s top producer of sorghum.
The Ministry of Commerce announced Feb. 4 it was investigating whether U.S. sorghum was being exported to China at improperly low prices, according to The Associated Press. That followed White House decisions to raise tariffs on some Chinese-made washing machines and solar power equipment and to investigate steel imports and Beijing’s technology policy.
The announcement sent shockwaves into the market and Colyer wrote to President Donald Trump to voice his concern.
“Sorghum prices fell 25 percent over that weekend,” Colyer said. “This is an important crop to Kansas producers. Sorghum is an important value-added commodity.”
The work in recent years by sorghum leaders has paid off, he said. “Kansas producers have really stepped up and developed their market. We are producing what the market wants.”
The relationship has been mutually beneficial.
“U.S. sorghum benefits China by providing a cost-effective ingredient for animal feed, boosting China’s meat production and ensuring that Chinese households have access to affordable pork, poultry and beef,” the governor said.
Kansas sorghum farmers produce 201 million bushels in 2017, accounting for 55 percent of U.S. sorghum production, Colyer said. Producers have been in contact with his office and also with Lt. Gov. Tracey Mann, a western Kansas native with agricultural roots.
“Embedded in a dynamic economy reliant on feed grains, feed stocks for ethanol and exports, Kansas is keen for added value in global economy,” Colyer said. “Trade matters immensely to Kansas agriculture and our overall economy.”
He is working closely with U.S. Sens. Pat Roberts and Jerry Moran and U.S. Rep. Roger Marshall because resolving the dispute needs a unified response.
“The current trade situation for sorghum threatens to cause considerable hardship for my state’s agricultural producers,” Colyer said. “The precipitous drop in sorghum prices since the onset of this crisis has devastated the premium market for Kansas sorghum producers.”
Once the investigation is resolved it should stabilize the market, the governor said.
“We are confident that, if China’s Ministry of Commerce looks at the facts, it will find that U.S. sorghum exports are not causing material injury in China,” he said.
The governor said he recognizes the president has a difficult path as he tries to address inequities in the short run. Colyer said Trump recognizes the importance of trade in the long run particularly for states like Kansas.
Whatever actions the administration takes in the short term to ensure a level playing field, the governor encouraged the president to set U.S.-China trade on a longer-term path that can lead to concrete steps to address differences.
“Closing our bi-lateral trade market is not an ideal solution and we must find an alternative,” Colyer said.
Dave Bergmeier can be reached at 620-227-1822 or [email protected].
