Senate Phase IV COVID-19 Relief Measure Unveiled, Negotiations Continue
Senate Republicans released their $1 trillion proposal for a Phase IV COVID-19 relief package this week including aid to agriculture. House Democrats cleared their $3 trillion version in mid-May, largely along party lines. However, due to the filibuster and the 60-vote threshold in the upper chamber, Senate Republicans and the White House must negotiate a bipartisan agreement with Congressional Democrats if a measure is to pass Congress. Because of the significant differences between the two parties on the appropriate level and substance of relief, negotiations are expected to be protracted. The Trump Administration and Congressional Republicans have called for a short-term measure to extend supplemental unemployment benefits and protection for homeowners and renters from foreclosures and evictions, but Congressional Democrats have objected to a short-term bridge that would maintain these benefits and protections until a final agreement is reached. House Majority Leader Steny Hoyer (D-MD) announced that House Members will be dismissed after votes today in order to return home to their districts for recess subject to the call of the chair for a vote on a finalized Phase IV agreement. The Senate will remain in session next week.
Highlights of Senate GOP COVID-19 Relief Package
The Health, Economic Assistance, Liability Protection and Schools (HEALS) Act:
- Provides $20 billion to support agricultural producers, growers and processors impacted by COVID-19 plus $14 billion from the Commodity Credit Corporation (CCC) for a total of $34 billion.
- Provides another economic impact payment of $1,200 per individual earning up to $75,000 and $2,400 for couples earning up to $150,000 plus $500 per dependent.
- Reduces enhanced unemployment insurance from $600 to $200 per week through September (the $600 benefit expired this week). Starting October 1, the $200 would be replaced with a payment covering 70 percent of a worker’s previous wages when combined with regular state benefits.
- Includes a five-year liability shield for businesses, schools and others from COVID-19 related lawsuits in the absence of gross negligence or intentional acts.
- Establishes a refundable payroll tax credit equal to 50 percent of an employer’s “qualified employee protection expenses,” such as testing for COVID-19, protective personal equipment and cleaning supplies.
- Provides key modifications to the Paycheck Protection Program in ways that are of special interest to farmers, ranchers (see story below.)
See summaries of Senate GOP relief package here, here, and here.
Senate GOP’s Phase IV PPP Provisions Could Prove Helpful to Farmers, Ranchers
The Continuing Small Business Recovery and Paycheck Protection Program Act, a bill championed by Senators Marco Rubio (R-FL) and Susan Collins (R-ME), has been included in the Phase IV COVID-19 GOP package. The language provides forgiveness for loans under $150,000 provided an applicant makes a good faith certification for the forgiveness and agrees to keep records for three years. Additionally, the applicant would be subject to an audit in those three years. The new language is well suited for farmers classified as sole proprietors, independent contractors or self-employed as income is calculated using gross income rather than net profit stated on an individual’s schedule F. Lenders may recalculate loans that have been previously approved to these entities if they would result in a larger loan. Read more here.
Agriculture Aid a Small but Thorny Issue in COVID-19 Relief Legislation
Although aid to agriculture amounts to about $34 billion under both the Senate and House versions of COVID-19 relief, there is still plenty of contention over how exactly relief will be provided. The House bill provides greater specificity on how USDA is to provide relief while the Senate measure provides broad authority for USDA to decide how to meet current needs in agriculture. Both approaches have been scrutinized. For example, the House approach does not cover the 2020 crop in the ground or harvest or processing disruptions due to COVID-19, although the measure receives kudos for fixing many problems with USDA’s Coronavirus Food Assistance Program, including pay limits and other limitations based on cumbersome marketing rules that determine eligibility as well as relief to the ethanol and textile sectors.
The Senate approach provides fairly broad authority to cover a myriad of needs in agriculture, but that authority will not necessarily translate into USDA covering a specific loss. The Renewable Fuels Association President and CEO Geoff Cooper stated, “It isn’t clear how or whether ethanol producers would benefit from the inclusion of ‘agricultural processors’ in the Senate bill’s agriculture relief provisions. As such, Senators Chuck Grassley (R-IA) and Joni Ernst (R-IA) are pressing for specific relief for ethanol producers along the lines provided in the House bill and in legislation authored by Grassley and Senator Amy Klobuchar (D-MN). Moreover, producers of all commodities are eager to ensure the 2020 crop in the ground, third and fourth quarter losses, and harvest and processing disruptions are clearly covered. For more information on the GOP package’s agricultural provisions, access the Farm Bureau’s comparison of the House and Senate bills here.
Checkoff Board Members Elected to U.S. Grains Council Board
The United Sorghum Checkoff Program and the U.S. Grains Council have worked together to successfully market domestic sorghum internationally for decades. Part of what makes this relationship so successful is the Sorghum Checkoff’s representation throughout the U.S. Grains Council’s leadership. During a virtual U.S. Grains Council Meeting this week, Sorghum Checkoff Board Director Jim Massey was elected to serve as the Council sorghum sector director and Past Chairwoman Verity Ulibarri was elected to serve as an at-large board member. National Sorghum Producers congratulates both producers on their new roles and looks forward to seeing all they will accomplish. Read the full release at SorghumCheckoff.com.
NSP Attends President Trump Energy Event in Midland
National Sorghum Producers grower members Kody Carson and Scott Irlbeck, CEO Tim Lust and other West Texas producers attended an energy industry event hosted by President Trump on Thursday in Midland, Texas. Sen. Ted Cruz (R-TX) and Reps. Michael Conaway (R-TX) and Jodey Arrington (R-TX) were also in attendance. Carson, Irlbeck and Lust served as the sorghum industry representation at the event.
USDA Releases Latest CFAP Payment Data
USDA has disbursed $6.6 billion in Coronavirus Food Assistance Program (CFAP) payments and approved 473,124 applications, USDA said Monday. The amount is significantly lower than the $16 billion provided for direct payments under the program. Observers believe that pay limits and cumbersome marketing rules limiting eligibility have contributed to the far lower than expected relief. Sorghum producers have received $14.3 million in CFAP payments. Access USDA’s latest update here.
Ernst to EPA: Make E15 Available at Every Gas Pump Across America
This week, Senator Joni Ernst (R-IA) called on Environmental Protection Agency (EPA) Administrator Andrew Wheeler to certify biofuel infrastructure for E15 and remove unnecessary labeling which will increase consumer access to E15. Read Senator Ernst’s letter here.
FAS: Sorghum Prices Rally as China Returns to Market
U.S. sorghum prices have rallied in recent months as China dramatically increased its purchases, USDA’s Foreign Agricultural Service (FAS) said in a report issued Tuesday. “As of early July, U.S. commitments to the world have more than doubled the entire volume sold in 2018-19 (September-August) and are headed to reach the 2017-18 level and about three-quarters of the commitments have been slated for China,” FAS said. “U.S. sorghum is highly dependent on exports relative to other grains, and China has been the most important outlet in recent years.” In the 2019-20 marketing year, China has purchased 71,700 tonnes of sorghum, and there were sales of 65,000 tonnes for 2020-21.
NSP Sends Letter to U.S. Department of Commerce
National Sorghum Producers sent a letter to the U.S. Department of Commerce expressing concerns regarding a petition for countervailing duties (CVDs) on imports of phosphate fertilizer from Morocco and Russia. Read the full letter here.
Export Report
Export sales were strong this week. China moved deliveries on 2.7 million bushels from the 2019-20 marketing year to the 2020-21 marketing year which starts September 1. China also made additional purshaes to be delivered in the 2020-21 marketing year bring total commitments for the 2020-21 marketing year to 6.4 million bushels. China also led in taking deliveries, and along with Japan, took delivery of 3.3 million bushels. Basis strengthened on the week, with flat prices for sorghum now well above flat prices for corn in some interior locations.
KGSC Seeks Western Tier Candidates
The Kansas Grain Sorghum Commission is looking for candidates in the western tier! The deadline is not until later in the year, but it is important to start early. Counties in the western tier include: Cheyenne, Rawlins, Decatur, Norton, Sherman, Thomas, Sheridan, Graham (1st district); Wallace, Logan, Gove, Trego, Greeley, Wichita, Scott, Lane, Ness (2nd district); Hamilton, Kearny, Finney, Hodgeman, Stanton, Grant, Haskell, Gray, Ford, Morton, Stevens, Seward, Meade, Clark (3rd district). For more information, contact the KGSC office.
NRCS Seeks Ag Producers to Serve as Mentors
The USDA Natural Resources Conservation Service (NRCS) has a new mentoring initiative called the Conservation Agricultural Mentoring Program and is looking for agricultural producers to serve as mentors. The program is aimed at ensuring new NRCS employees are properly trained and mentored about the local production agriculture where they work.
If you are interested in serving as a mentor or would like to receive additional information, contact your local NRCS district conservationist or assistant state conservationist for field operations.
Crop Update
By July 19, thirty-four percent of the nation’s sorghum acreage had reached the headed stage, 8 percentage points ahead of last year but equal to the five-year average. Seventy-seven percent of Texas’ sorghum had reached the headed stage by July 19, six percentage points ahead of last year and 4 points ahead of average. Nineteen percent of nation’s sorghum was at or beyond the coloring stage by July 19, four percentage points ahead of last year but equal to the average. Fifty-one percent of the nation’s sorghum was rated in good to excellent condition on July 19, five percentage points above the previous week but 22 points below the same time last year. Conditions continue to improve in much of the sorghum belt.
NSP Yield Contest
We are accepting entries for the 2020 Sorghum Yield Contest! The goal of the yield contest is to increase grower yields, transfer knowledge between growers to enhance management and identify sorghum producers who excel in each state and throughout the country. Entry forms must be completed and submitted 10 days prior to harvest, and all forms must be emailed no later than Tuesday, Dec. 1, 2020. If you are expecting a super sorghum yield, visit SorghumGrowers.com/yield-contest to enter!
Sorghum in the Spotlight:
Sorghum producers see less damage by sugarcane aphids - Waco Tribune
Midseason grain sorghum management - High Plains Journal
Sorghum steals the spotlight - Ag Web
Huge hike in volume of US sorghum imports into China - Feed Navigator
U.S. sorghum prices rally with China's return to the market - USDA FAS
Virtual format for U events adds value - High Plains Journal
Upcoming Events
Aug 11-12 Sorghum U/Wheat U - Virtual
Aug 11-12 Sorghum Checkoff Board Meeting - Wichita, KS
Aug 13-14 NSP Board Meeting - Liberal, KS
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. Sorghum Smart Talk
On this edition of Sorghum Smart Talk, we have Sorghum Checkoff Executive Director Florentino Lopez on to discuss the Sorghum Checkoff’s recent initiatives to expand into Asian markets. Lopez dives into Vietnamese aquaculture, Chinese liquor and Indian market penetration. To learn more about the regulatory process of getting into these countries, the impact it could have on domestic grain demand and future Sorghum Checkoff initiatives, listen in by clicking the image below!