Sep 27, 2021

National Sorghum Producers - Sorghum e-Notes

Posted Sep 27, 2021 7:30 PM

Enter the 2021 Sorghum Yield Contest for a Chance to Go to Commodity Classic!
Are you expecting to harvest a #SuperSorghum yield? The National Sorghum Producers Yield Contest offers the opportunity for you to showcase your sorghum crop, competing with farmers across the Sorghum Belt, and now is the time to enter! Winners will be recognized at the 2022 Commodity Classic in New Orleans! This contest allows our industry to acknowledge some of the best growers in the U.S. and helps farmers learn from one another. For more information or to enter the contest, visit SorghumGrowers.com/yield-contest.

NSP Vice Chairman Speaks at House Ag Roundtable
This morning, National Sorghum Producers Vice Chairman Craig Meeker spoke to the House Committee on Agriculture Subcommittee on General Farm Commodities and Risk Management at a roundtable to discuss how existing Farm Bill support programs and crop insurance are functioning and give an update on the economic and growing conditions on the ground. Meeker was on a panel alongside 12 other agricultural organization leaders. Meeker's testimony noted the sharp uptick in input costs and its impact on profit margins for farmers. Meeker also spoke to maintaining and improving the foundational support provided through crop insurance and expressed support for the bipartisan work done to extend the WHIP+ program into 2020 and 2021.   

NSP Hosts Fall Virtual D.C. Meetings
This week, National Sorghum Producers hosted a round of fall meetings with legislators serving on the House and Senate Agriculture Committees and Members across the Sorghum Belt. Topics covered included needs for improved infrastructure to help move commodities both domestically and internationally, the importance of preserving tax codes that allow agricultural operations to pass assets on to the next generation without undue burdens and how increasing input prices are impacting farm productivity. Seventeen NSP members from six states participated in the virtual meetings.

Conservation Spending Details Released
According to an Agri-Pulse report, Democrats are circulating a $28 billion conservation plan to dramatically expand existing farm bill conservation programs while authorizing $5 billion in new direct payments to farmers who plant cover crops. The package is said to include $9 billion for the Environmental Quality Incentives Program (EQIP); $7.5 billion for the Regional Conservation Partnerships Program (RCPP); $4 billion for the Conservation Stewardship Program (CSP); $1.5 billion for the Agricultural Conservation Easement Program (ACEP); $5 billion for a new cover crop initiative at FSA, including a streamlined, flat $25/acre payment for cover crops as well as a $5/acre payment aimed at rented lands; and, $1 billion for NRCS technical assistance. As earlier anticipated, the bill also extends conservation programs through 2031, with other Farm Bill titles expiring in 2023.

House Democrats Pass CR, Package Expected to Fail in Senate over Debt Ceiling
Tuesday, House Democrats passed a continuing resolution (CR) to fund the government through December. The package also included disaster relief, Afghan resettlement support, WHIP Plus extension covering 2020 and 2021 losses, and an increase in the debt ceiling. The package, due to the debt ceiling increase, is expected to fail in the Senate, where 10 Republicans would need to join all the Democrats to pass it. The package “is going to go down like a fat guy on a seesaw,” Sen. John Kennedy (R-LA) predicted this week. With a September 30 government shutdown deadline looming, Democrats will likely have to start back at square one with either a clean CR or a CR with disaster aid, both of which are expected to receive plenty of Republican support to pass. Immediately following House passage, Senate Republican leaders rolled out an alternative CR without the debt limit. That proposal from Senate Republican Leader Mitch McConnell (R-KY) and Senate Appropriations Committee Ranking Member Richard Shelby (R-AL) would also provide assistance, just like Democrats’ plan, and extend government funding for the same duration. Read more herehere, and here.

Disagreements Divide Democrats on Reconciliation Package, Fresh Changes to Stepped Up Basis Could Creep Back into the Debate
Disagreements continue to divide Democrats on the massive $3.5 trillion “human infrastructure” budget reconciliation bill. Negotiations continue over the total cost of the package, how it will be paid for, and substantive issues, including state and local tax deductions, Medicare’s ability to negotiate prescription drug prices, a program designed to reduce greenhouse gas emissions by 45 percent by 2030, the expansion of Medicare, the inclusion of immigration despite the ruling by the Senate parliamentarian, and a host of tax issues harmful to agriculture, among other things. This morning, rumors were circulating that Democratic lawmakers are again eyeing changes to stepped up basis to pay for the package. Meanwhile, former White House chief of staff John Podesta sent a memorandum to Democratic lawmakers telling them they risk losing their Senate and House majorities if they fail to reach an agreement on their reconciliation package. “The political reality is clear, given Democrats have no margin for error in the Senate and a limited margin in the House,” Podesta said in his memo. “We will not secure the full $3.5 trillion investment. It’s time for Democrats to unite in finding the path forward.” Read more here and here.

Senator Wyden Pushing for Changes to Stepped Up Basis through Capital Gains
Senate Finance Committee Chairman Ron Wyden (D-OR) continues to push for changes to stepped up basis through capital gains tax on appreciation despite a House Ways and Means Committee’s decision (thus far) to leave it out. Senate Majority Leader Charles Schumer (D-NY) on Thursday morning announced that the Senate, House, and White House have reached a deal on a “framework” to pay for the massive human infrastructure spending package. Wyden and House Ways and Means Committee Chairman Richard Neal (D-MA) will use the House Ways and Means Committee’s tax proposal combined with a few “Senate ideas” that were left out of Chairman Neal’s bill, which his committee passed last week. Chairman Neal on Thursday afternoon told reporters he is not interested in reviving the idea to tax unrealized capital gains that are passed on to heirs. “Not at the moment, no,” he said when asked whether eliminating stepped-up basis is on the menu. Despite Chairman Neal’s assurances, the fight may not be over with the White House releasing analysis on Thursday estimating that the 400 wealthiest American families paid an average federal income tax rate of only 8.2 percent on $1.8 trillion of income from 2010 to 2018. "Two factors that contribute to this low estimated tax rate include low tax rates on the capital gains and dividends that are taxed, and wealthy families’ ability to permanently avoid paying tax on investment gains that are excluded from taxable income," the report said. Read more here and here. National Sorghum Producers continues to stay engaged with lawmakers concerning these tax provisions and is actively working to protect the long-standing tax code provisions that are fundamental to the financial health of production agriculture.

WHIP Plus Continuing Resolution Details
As noted above, $10 billion in funding was provided in the House-passed Continuing Resolution to effectively extend and expand WHIP+ benefits to cover 2020 and 2021 losses. The bill makes assistance available for losses due to droughts, wildfires, hurricanes, floods, derechos, excessive heat, winter storms, freeze, polar vortexes, smoke exposure, quality losses of crops, and excessive moisture. Drought assistance is triggered when counties experience D2 drought conditions on the Drought Monitor for eight consecutive weeks, or more severe drought conditions. Access a fact sheet of more details here.

EPA Reportedly Eying Deep Cuts to RFS RVO for 2020, 2021, 2022 
The Environmental Protection Agency (EPA) is proposing big cuts to the nation's biofuel blending requirements, according to an EPA document obtained by Reuters. The report outlined an EPA proposal which would reduce RVO requirements for 2020 and 2021 to about 17.1 billion gallons and about 18.6 billion gallons. 2022 levels would be set at about 20.8 gallons. The EPA did not comment on story, but Administration officials cautioned that numbers are not final and still subject to revisions before clearing an interagency review process. Agriculture Secretary Tom Vilsack was pressed on the subject. Secretary Vilsack said while he didn’t know timing, EPA would release the numbers when the agency is ready. â€śI don't know what the numbers will be,” Vilsack said. “What I do know is that that it's fair to say that there were some significant disruptions during 20 and 21, as a result of the pandemic, certainly during 20 [we saw] significant disruptions.” Should the numbers turn out to be accurate, or even close to being so, it will be a great disappointment for farmers and biofuels producers. Read more here. NSP continues to stay engaged in policy impacting the biofuels industry and defending a vital market for sorghum producers and processors.

Vote on Bipartisan Infrastructure Package Could Slip Despite Speaker’s Commitment on Timing
Though House Speaker Nancy Pelosi (D-CA) committed to more moderate Democrats a vote on the Senate-passed bipartisan infrastructure package by September 27, the timeline may be delayed due to delays in the $3.5 trillion "human infrastructure" package negotiations. If a vote does occur as planned, its fate is not looking promising with Congressional Progressive Caucus Chair Pramila Jayapal (D-WA) insisting half of her 96-member caucus will vote against the infrastructure bill if House leadership moves ahead without first moving forward with the massive reconciliation package. “It will not be a positive reaction to help coalesce our caucus if the infrastructure bill goes down,” said House Majority Leader Steny Hoyer (D-MD). “I don't agree with the judgment of those who think that somehow it will compel the moderate wing of the caucus to be more supportive" of reconciliation. Read more on the intra-party struggle here and here.

Vilsack Says Climate Action, State USDA Appointees Coming Shortly
Agriculture Secretary Tom Vilsack says the Biden Administration will be announcing new steps on agriculture and climate “very, very shortly” and also will start filling the Department’s state-level leadership positions within days. “We've listened very, very carefully on this issue of climate, and we've heard some really good advice from farmers and ranchers and those who represent farmers and ranchers on how best a structured approach would be most accepted,” Vilsack said. Vilsack said announcements about a “significant number” of state-level appointments would start in “late September and into October.” The posts include state leaders for Farm Service Agency and Rural Development offices. He also said the White House is close to nominating someone to be Undersecretary for Trade and Foreign Agricultural Affairs. Read more here

Foundational WOTUS Rule Could Come This November
While speaking virtually to the National Association of State Departments of Agriculture, Environmental Protection Agency (EPA) Administrator Michael Regan said the agency plans to work as expeditiously as possible on re-writing of definition of what constitutes a waters of the U.S. He anticipates proposing a foundational proposed rule by November that reflects the pre-2015 regulations, updated by Supreme Court decisions, and a second rule building on that foundation by next winter. Regan says the intent is for the agencies to learn from stakeholder experiences under the rules introduced in the past two Administrations and help inform the development of a more durable definition that can withstand court challenges. Read more here. National Sorghum Producers submitted comments to the EPA earlier this month with recommendations as the agency considers the Waters of the U.S. (WOTUS) rule and implementation.

OSHA Moves Toward Development of Heat Standard
The federal government is increasing its oversight of farms and other operations where workers are exposed to heat by launching an enforcement initiative and encouraging employers to provide water, rest, and shade as needed to cope with high temperatures. The Occupational Safety and Health Administration (OSHA) said Monday it is stepping up its efforts to protect workers, saying it will be prioritizing “heat-related interventions and inspections of work activities on days when the heat index exceeds 80 degrees Fahrenheit.” Also this week, President Biden announced that his Administration, via the Department of Labor, Department of Health and Human Services, Environmental Protection Agency, and other agencies, will propose regulations to protect workers, children, seniors, and at-risk communities from extreme heat. Read more here

House Agriculture Committee Examines Carbon Markets
Members of the House Agriculture Committee on both sides of the aisle raised concerns Thursday that many farmers will be left out of emerging carbon markets, and the panel was sharply divided over whether the Agriculture Department should be involved in regulating them. Committee Chairman David Scott (D-GA) also raised the possibility during a hearing that using agriculture to reduce greenhouse gas emissions could affect food production. Much of the concern raised by lawmakers focused on the ability of farmers to participate in carbon markets, including minority and small-scale farmers, and the impact on those growers who may be unable to earn credits for practices such as cover crops and conservation tillage that they have been using for years. “My concern … is that there's going to be a value created out of thin air that's going to provide very little for the farmer or the environment, and then a whole bunch of people that don't have anything to do with agriculture are going to be getting the money,” said Rep. Austin Scott (R-GA). Read more here and view the hearing here.

Senate Democrats Release Climate Study 
Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI), along with Senate Democratic Leader Chuck Schumer (D-NY), and Sen. Cory Booker (D-NJ), on Wednesday released a report detailing the cost of inaction on the climate crisis from the viewpoint of the report’s authors. View the report here

Export Report
China purchased 4.8 million bushels of sorghum last week. were purchased for export. Just two weeks into the new marketing year, this brings total purchases to 89.5 million bushels, or 28 percent what was estimated in the most recent USDA World Agricultural Supply and Demand Estimates (WASDE).

Sorghum Smart Talk
Sorghum Checkoff Executive Director Norma Ritz Johnson took the driver seat to interview native Kansan and Executive Director of the Kansas Grain Sorghum Commission and Producers Association, Jesse McCurry. In this episode, they discuss all things KANSAS Sorghum, the purpose & mission of the Kansas commission, this year’s crop, and more. Listen to the full episode at SorghumCheckoff.com or your favorite podcast platform!   

Sorghum Crop Progress Report
The U.S. Department of Agriculture Weekly Crop Progress Report said 92 percent of the nation’s sorghum acreage was at or beyond the coloring stage by September 19, one percentage point ahead of last year and 4 points ahead of the five-year average. By September 19, fifty-one percent of the sorghum was mature, 2 percentage points ahead of last year and 5 points ahead of average. Eighty-three percent of Texas’ sorghum was mature by September 19, four percentage points behind last year but 1 point ahead of average. Twenty-five percent of the 2021 sorghum acreage had been harvested by September 19, one percentage point behind last year and 3 points behind average. 56 percent of the nation’s sorghum was rated in good to excellent condition on September 19, one percentage point below the previous week but 5 points above the same time last year.

Sorghum Checkoff Releases Weekly Sorghum Basis Snapshot
The Sorghum Checkoff, with Southwest Agribusiness Consulting, released its weekly sorghum basis snapshot, available at SorghumCheckoff.com.

Sorghum in the Spotlight:
Is sorghum Nebraska’s next big alternative crop? - The North Platte Telegraph 
Griddled Banana Bread with Sorghum Syrup - Country Living  
Sorghum a shining star in export markets, organization CEO says - High Plains Journal
Sorghum harvest expected to be average with demand increasing - Brownfield Ag

Upcoming Events
Oct. 8                      2021 Center for Sorghum Improvement Seminar Series 9 - Virtual
Oct. 19-21               Sunbelt Ag Expo - Moultrie, GA 
Nov. 17-18               Sustainable Agriculture Summit - Las Vegas, NV
Nov. 18                    NAFB Trade Talk - Kansas City, MO
Nov. 25-26               Thanksgiving - Office Closed

Market News - To view this week’s Gulf export grain report, click here.

About Sorghum Notes
Sorghum Notes is a publication of the National Sorghum Producers. NSP represents U.S. sorghum producers and serves as the voice of the sorghum industry from coast to coast through education and legislative and regulatory representation.