RMA Expands Coverage for Grain Sorghum
The U.S. Department of Agriculture (USDA) Risk Management Agency (RMA) created enhanced coverage for irrigated grain sorghum producers. The new coverage will be effective November 30, 2022, for the upcoming 2023 crop year.
RMA said in its announcement it has developed a modification to the Area Risk Protection Insurance (ARPI) program to improve crop insurance options for irrigated grain sorghum producers in select counties in Colorado, Kansas, Oklahoma and Texas. This modification was pursuant to the 2018 Farm Bill, a policy component NSP advocated to include, that required RMA to research and develop potential improvements to insurance for grain sorghum.
RMA said it will now allow irrigated grain sorghum producers to index grain sorghum indemnities to corn, which will be used as a “proxy” crop, and producer data shows when there is a loss for irrigated corn, there is a high correlation to a loss for irrigated grain sorghum.
The existing rates for irrigated corn will be used for irrigated grain sorghum and 80 percent of the irrigated corn yield will be used to determine the guarantee. There is no change to the grain sorghum price. This modification will be available for Area Yield and Revenue Protection, as well as Area Revenue Protection with Harvest Price Exclusion. If there is not an irrigated corn ARPI offer in a county, there will not be an irrigated grain sorghum offer.
NSP encourages producers to contact their crop insurance agent to learn more about the new coverage, and view the RMA fact sheet and frequently asked questions for more information.
Congress Intervenes to Stop Rail Strike
Following a tense negotiation period and rejection of a tentative agreement by 4 of the 12 rail unions, Congress intervened this week to prevent a devastating rail strike. On Thursday, Congress passed H.J. Res 100 which imposes the original tentative agreement from September 15th as the official contract between rail unions and management. Other legislative proposals, such as extending the cooling off period by 60 days and adding 7 days of paid sick leave to the contract, were rejected by the Senate. Read more here.
Farm Groups Call for Extension of ERP for 2022 Losses, Request Phase 1 Approach
Aletter sent to the four principals of the Agriculture Appropriations Subcommittee this week is making the case for an extension of the Emergency Relief Program (ERP) for losses suffered by producers in the 2022 growing year. National Sorghum Producers, along with 16 other agricultural organizations, led a letter that was sent on Thursday. The letter called for an extension of ERP and for USDA’s Farm Service Agency to use Phase I methodology, following deep concerns expressed about the whole farm approach taken under ERP Phase II. Read more here.
EPA Proposes Increased Biofuel Blending in RFS Program
The EPA released a proposed rule Thursday that would raise the volume of ethanol and biofuels blended into the nation’s fuel supply through 2025. The move was celebrated by renewable fuel and farm groups and is the first proposed renewable volume obligation (RVO) made by the EPA without Congressionally set statutory targets. Under the proposed rule, the 2023 RVO would be 20.82 billion gallons, 2024 would be set at 21.87, and 2025 would grow to 22.68. For reference, the 2022 RVO is set at a finalized volume of 20.63 billion gallons. The public comment period for the rule is open through February 10th, 2023, with the EPA hoping to finalize the rule by next summer. Read more here.
E15 Bill Introduced in Senate with Support of API
Senator Deb Fischer (R-NE) and Senator Amy Klobuchar (R-MN) introduced legislation on Tuesday that would make E15 fuel available year-round. The Consumers and Fuel Retailer Choice Act of 2022 has garnered an impressive list of bipartisan cosponsors in the Senate and notably has the backing of the American Petroleum Institute (API) which is why we include the bill introduction in this section of the newsletter rather than down below under bill introductions. In a November 21 letter to Congressional leadership, API joined agricultural groups, including National Sorghum Producers, in calling for E15 expansion to bring “certainty and consistency to the fuel market.” Read more here.
Omnibus Discussions Continue but Passage Could Slip to December 23
With the Continuing Resolution (CR) that is keeping the government running set to expire after December 16, Democrats in Congress have begun work on their own Omnibus Appropriations bill after failing to reach agreement with Republican counterparts on a path forward, including overall spending and split between defense and non-defense spending. Democrats have reportedly made efforts to include Republican priorities in hopes of achieving the bipartisan support that will be needed to clear the 60 vote hurdle in the Senate. Omnibus legislation is the likely vehicle for any extension of the ERP disaster program. Following a Tuesday meeting at the White House, Majority Leader Chuck Schumer (D-NY) and Republican Leader Mitch McConnell (R-KY) stated their intent to work together on a funding resolution and shared that they would both prefer an omnibus as opposed to a year-long CR. For his part, Senator McConnell said there is “widespread agreement” on the need for an omnibus bill, in part to protect national security from cuts. This development comes as some lawmakers have weighed in urging Leader McConnell to only agree to a short-term CR that would fund the government into early next year, allowing the Republican-led House to give the GOP greater leverage in the crafting of the legislation. Reports already indicate that a one-week extension of the current CR, to December 23, may well be needed to give lawmakers time to wrap up an Omnibus bill. Read more here.
Agriculture Groups Urge Confirmation of Key Trade Nominees
Over 50 agricultural groups, including National Sorghum Producers, joined a Farmers for Free Trade letter urging Senate leadership to confirm Ms. Alexis Taylor, who is nominated to serve as Undersecretary of Agriculture for Trade and Foreign Agricultural Affairs, and Mr. Doug McKalip, who is nominated to serve as Chief Agricultural Negotiator for the Office of the United States Trade Representative, to their respective positions. United States Meat Export Federation President and CEO Dan Halstrom reiterated the importance of a strong agricultural trade team as key trade negotiations for the Indo-Pacific Economic Framework approach.
USDA Announces United Sorghum Checkoff Program Board Appointments
The U.S. Department of Agriculture (USDA) announced the appointment of four members to serve on the United Sorghum Checkoff Program’s Board of Directors. All four appointees will serve three-year terms starting December 2022 and ending December 2025. Sorghum farmers appointed to the board are include Jeff Zortman of Fowler, Kansas as a Kansas Member; Kendall Hodgson of Little River, Kansas, as a Kansas Member; Joshua Birdwell of Malone, Texas, as a Texas Member; and new to the board is Zachary Rendel of Miami, Oklahoma as an Oklahoma Member. The 13-member United Sorghum Checkoff Program Board is composed of nine sorghum farmers who represent the three states with the largest sorghum production – Kansas, Oklahoma, and Texas – and four at-large national representatives.
Registration & Housing Open November 15 for 2023 Commodity Classic in Orlando
Online registration and housing for the 2023 Commodity Classic will open on November 15, 2022. America’s largest farmer-led agricultural and educational experience will be held Thursday, March 9 through Saturday, March 11 in Orlando.
To register, reserve hotel rooms, sign up for email updates, and register for optional tours in and around Orlando, visit CommodityClassic.com. A list of exhibiting companies, a map of the trade show floor, and the registration brochure can also be found online.
Early discounts on registration end January 20, 2023.
Sorghum Checkoff Releases Weekly <br>Sorghum Basis Snapshot
The Sorghum Checkoff, with Southwest Agribusiness Consulting, released its weekly sorghum basis snapshot, available at SorghumCheckoff.com.
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. Learn more at www.SorghumGrowers.com.