NSP Signs on to Letter Supporting Tai’s Nomination for USTR
On January 26, 2021, a coalition of 115 U.S. food and agriculture associations, including National Sorghum Producers, sent a letter to leadership of the Senate Committee on Finance supporting the nomination of Katherine Tai to serve as the United States Trade Representative. The organizations noted Tai’s immense experience in opening foreign markets and reducing barriers for U.S. food and agriculture workers and exporters for the benefit of consumers in the U.S. and across the globe as well as her ability to build bipartisan support for trade policies.
Export Report
Once again, China topped the list for U.S. sorghum purchases this week at 9.96 million bushels for the 2020/21 marketing year. China also moved 2.4 million purchased bushels from the current marketing year to the 2021/22 marketing year which will start Sep. 1. This brings the total bushels purchased in the 2020/21 marketing year to 226.7 million bushels, or 78 percent of the USDA WASDE export projection for this marketing year. Basis has continued its record high remaining steady to slightly up in the interior and up on the Gulf where sorghum is trading at 135 percent of corn.
Paycheck Protection Program (PPP) Returns
Around 60,000 borrowers were approved for more than $5 billion in forgivable loans during the first week of the reopened Paycheck Protection Program (PPP), the Small Business Administration (SBA) said last week. The small-business coronavirus relief effort relaunched January 11 after closing last August. The first wave of applications was largely handled by community and small lenders after the SBA set aside time for them to process the loans exclusively. National Sorghum Producers is pleased the most recent stimulus package passed by Congress in December grants farmers expanded access to PPP, and we encourage producers to look into the opportunity the program provides. Even if a producer did not qualify for PPP in the spring, they could qualify under the new expanded access. Access more information here or watch Wolters Kluwer expert Michael Fuchs review SBA guidance unique to PPP farm and ranch borrowers here.
While President Biden Says He Still Hopes for Bipartisan COVID Relief, Congressional Democrats Prepare for Unilateral Action via Budget Reconciliation
President Joe Biden on Monday suggested he would pursue a bipartisan deal on coronavirus aid for a “couple weeks” before resorting to the budget reconciliation route that could allow for approval of a package along party lines. President Biden told reporters he expected negotiations to take a couple weeks and the decision to use reconciliation will depend on the outcome of negotiations. President Biden also signaled his Administration might be willing to meet centrist lawmakers’ calls to reduce the $1.9 trillion price tag of the White House plan, including targeting individual payments to those in greatest need.
Meanwhile, Congressional Democrats are preparing to vote on a budget resolution next week that would pave the way for a reconciliation process that could move a COVID-19 package on a party-line vote in both chambers of Congress. House Majority Leader Steny Hoyer (D-MD) late Tuesday adjusted the House floor schedule, notifying lawmakers that the House's session next week would potentially stretch into the weekend. That change would allow the House to adopt a budget resolution, the first step in initiating reconciliation. There would not be any floor votes the following two weeks during which time House committees would instead be marking up their respective pieces of the reconciliation package based on instructions in the budget resolution. The Senate is also expected to bring a fiscal 2021 budget resolution to the floor next week, although the self-quarantine of Senator Mark Warner (D-VA) due to COVID-19 exposure may scuttle these plans as Democrats would need all 50 senators in their caucus plus the Vice President to clear a budget in the upper chamber. In addition to holding all 50 senators, Democrats cannot afford to lose more than a handful of House Democrats in order to pass the legislation in the lower chamber to get a package to the President’s desk for signature. Congressional Democrats are aiming to have a bill passed by March 14 to avoid any lapse in current relief provided under prior COVID aid.
Senate Continues to Confirm Biden Administration Nominees
The Democratic-controlled Senate is focused on confirming as many Biden Administration cabinet nominees as possible before the chamber turns its attention to impeachment. Monday, the Senate confirmed Janet Yellen, the former chair of the Federal Reserve, as Secretary of the Treasury and Antony Blinken as Secretary of State. Previously, the Senate confirmed Avril Haines as Director of National Intelligence and Lloyd Austin as Secretary of Defense. Secretary of Agriculture nominee Tom Vilsack is slated to appear before the Senate Committee on Agriculture next Tuesday and EPA Administrator Nominee Michael Regan will have his hearing Wednesday. Both are expected to be confirmed by vote of the Senate thereafter.
President Biden Signs “Sweeping Climate Actions”
Through an Executive Order signed Wednesday, President Biden committed to the goal of conserving at least 30 percent of lands and oceans by 2030 and launched a process for stakeholder engagement from agricultural and forest landowners, fishermen, Tribes, States, Territories, local officials, and others to identify strategies that will result in broad participation. He also called for “the establishment of a Civilian Climate Corps Initiative to put a new generation of Americans to work conserving and restoring public lands and waters, increasing reforestation, increasing carbon sequestration in the agricultural sector, protecting biodiversity, improving access to recreation, and addressing the changing climate.” Biden noted his strategy to address climate change will include seeking input from farmers, ranchers, and other stakeholders on how to use federal programs to produce “verifiable” carbon reductions and increase income and jobs for rural Americans. Also this week, President Biden signed an executive order to "pause" new oil and gas leasing on public land and offshore water "to the extent possible" and to review existing leasing and permitting practices "related to fossil fuel development" on the properties. Though President Biden declared that, "We're not going to lose jobs in these areas; we're going to create jobs,” workers dependent on these sectors of the economy disagreed. Read more on the Executive Orders here. And, for those looking to learn more about agriculture-related climate proposals, read the Climate 21 Project analysis here.
Senator Schumer Urges Biden to Declare Climate Emergency
Senate Majority Leader Chuck Schumer (D-NY) called for President Joe Biden to go further than his actions this week with respect to climate change, urging the President to declare a climate emergency, a move that would give the new Administration new and sweeping powers, including the ability to redirect funding for clean energy projects, shut down crude oil exports, suspend offshore drilling, and curtail the movement of fossil fuels on pipelines, trains, and ships. Schumer also said he believes Congress could advance major parts of a climate agenda, including a potential ban on conventional, gas-powered cars, through budget reconciliation. Read more here.
Senator Stabenow Outlines Agriculture Committee Priorities
Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) said Tuesday she hopes to move on climate legislation and the reauthorization of child nutrition programs. Stabenow also noted she expects 28 nominees to come before the Senate Agriculture panel for confirmation hearings, including candidates for other USDA positions, the Commodity Credit Corporation, the Farm Credit Administration, and the Federal Agricultural Mortgage Corporation (Farmer Mac). Pertaining to climate, Stabenow stated she believes carbon is “a new commodity” that farmers have and wants to tackle the issue of climate credits. “We have a real opportunity in agriculture and forestry. I start with the idea that whatever we do will be voluntary, producer-led and bipartisan,” she said. Stabenow also noted she wants immigration reform to move forward. Read more here.
Secretary Vilsack Outlines USDA Agenda
Secretary of Agriculture nominee Tom Vilsack said in an interview on Friday that he has already sketched out his agenda. “There are probably five very, very large challenges ahead that have to be dealt with very quickly,” he said. Topping the list is protecting USDA employees and people who process the nation’s food from the COVID virus, and figuring out which land-grant universities, government laboratories, and other department offices might be able to store and administer vaccines. Hunger relief is a pressing issue, as are promoting social justice and fighting climate change. Next comes supporting regional food systems and helping farmers. “Once we get a bit on the other side of the virus itself, then we have the important business of revitalizing the rural economy that has been hit by this,” Vilsack said. Read more here.
USDA Halts $2.3 Billion in CFAP Supplemental Support Pending a Review
USDA late Wednesday announced, “In accordance with the White House memo, Regulatory Freeze Pending Review, USDA has suspended the processing and payments under the Coronavirus Food Assistance Program — Additional Assistance (this was the relatively narrow rule published January 15) and has halted implementation until further notice. FSA local offices will continue to accept applications during the evaluation period. In the coming days, USDA and the Biden Administration intend to take additional steps to bring relief and support to all parts of food and agriculture during the coronavirus pandemic, including by ensuring producers have access to the capital, risk management tools, disaster assistance, and other federal resources.”
The CFAP funding in question concerns that which was announced by the Trump Administration in its January 15 regulation, but not previously announced support or support recently approved by Congress for which regulations have not yet been written. While USDA billed the halting of support as temporary pending a review, Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) expressed her dissatisfaction with the January 15 regulation because it did not include help to priorities she had identified. “I very much want to see them evaluate where we are,” Stabenow said. “I’d like to have them look at what we wrote into the law that has not yet been acted on. A review makes sense.” Access the announcement here.
Submit Your Questions for Sorghum Smart Talk: Policy Edition
National Sorghum Producers is excited to announce we will be launching a Policy Edition of Sorghum Smart Talk in February, and we want your questions! This new podcast will feature the latest information on legislative and regulatory matters impacting sorghum producers and the agriculture industry. The first episodes will have NSP Chairman Kody Carson, NSP CEO Tim Lust and Combest, Sell and Associates founder Tom Sell covering a new year, the new Congress and a new Administration. We want to know what you want to hear! If you have questions you want answered in this inaugural episode, then submit them by clicking the image below.
House Agriculture Committee GOP Members Announced
The House Republican Steering Committee late Monday announced the 23 members it has recommended to serve on the House Agriculture Committee. The new Republican House Agriculture Committee members are: Rep. Tracey Mann of Kansas, Rep. Michelle Fischbach of Minnesota, Rep. Randy Feenstra of Iowa, Rep. Michael Cloud of Texas, Rep. Kat Cammack of Florida, Rep. Barry Moore of Alabama, and Rep. Mary Miller of Illinois. Republican members returning to the committee are: Ranking Member Glenn ‘GT’ Thompson of Pennsylvania, Rep. Austin Scott of Georgia, Rep. Rick Crawford of Arkansas, Rep. Scott DesJarlais of Tennessee, Rep. Vicky Hartzler of Missouri, Rep. Doug LaMalfa of California, Rep. Rodney Davis of Illinois, Rep. Rick Allen of Georgia, Rep. David Rouzer of North Carolina, Rep. Trent Kelly of Mississippi, Rep. Don Bacon of Nebraska, Rep. Dusty Johnson of South Dakota, Rep. Jim Baird of Indiana, Rep. Jim Hagedorn of Minnesota, Rep. Chris Jacobs of New York, and Rep. Troy Balderson of Ohio. House Democratic leadership has not yet announced a complete list of Democratic House Agriculture Committee members.
House Agriculture Appropriations Members Announced
Rep. Sanford Bishop (D-GA) will remain Chairman of the House Agriculture Appropriations Subcommittee, House Appropriations Committee Chair Rosa DeLauro (D-CT), announced Monday. DeLauro also announced the leaders of the other subcommittees and the roster of Democratic members of each subcommittee. She said the following nine Democrats, two more than in the 116th Congress, will serve on the House Agriculture Appropriations Subcommittee: Chairman Sanford Bishop of Georgia, Rep. Chellie Pingree of Maine, Rep. Mark Pocan of Wisconsin, Rep. Lauren Underwood of Illinois, Rep. Barbara Lee of California, Rep. Betty McCollum of Minnesota, Rep. Debbie Wasserman Schultz of Florida, Rep. Henry Cuellar of Texas, and Rep. Grace Meng of New York. On the Republican side, the House Agriculture Appropriations Subcommittee roster consists of: Ranking Member Jeff Fortenberry of Nebraska, Ranking Member, Rep. Robert Aderholt of Alabama, Rep. Andy Harris of Maryland, Rep. David Valadao of California, Rep. John Moolenaar of Michigan, and Rep. Dan Newhouse of Washington. The following Republicans are new members to the full committee: Rep. David Valadao of California, Rep. Guy Reschenthaler of Pennsylvania, Rep. Mike Garcia of California, Rep. Ben Cline of Virginia, Rep. Tony Gonzales of Texas, and Rep. Ashley Hinson of Iowa.
Farmers Have Options Regarding ARC/PLC Choice
March 15 is the deadline for farmers to choose between ARC and PLC for the 2021 crop year. Reportedly some county FSA offices are urging farmers in some traditional ARC-CO states to enroll in ARC-CO. We would urge farmers to very carefully consider their options under this election. With current commodity prices a farmer’s county would need around a 40 percent yield drop in order to trigger an ARC-CO payment for corn or soybeans. Some observers say a better option, and certainly one worth considering, may be PLC and Supplemental Coverage Option (SCO) crop insurance. If a farmer selects PLC, he has the safety net, plus can buy SCO which is more apt to pay because it is based on actual market conditions rather than historical prices in the case of ARC-CO. Producers cannot elect ARC-CO and take out SCO as they cover similar losses. If prices stay remotely in the current ranges, a farmer may opt for ARC just to have the yield protection in the case of a disaster year. It should be noted some analysts believe if a farmer has high crop insurance coverage levels above 80 percent SCO does not provide much additional coverage. However, if a producer has lower coverage SCO can provide meaningful assistance. The new Enhanced Coverage Option (ECO) is another option for farmers to increase coverage up to 90 or 95 percent. Bottom line: Farmers should run numbers on various decision tools to see the probabilities and the distribution of coverage. Read more from Jim Wiesemeyer here.
Registration For 2021 Special Edition Commodity Classic Now Open
Registration for the 2021 Special Edition of Commodity Classic is now open at CommodityClassic.com. The 2021 Commodity Classic will be delivered digitally March 2-5, 2021. The registration fee is waived for the first 5,000 farmers, thanks to the generous support of sponsors. All other registrants and farmers after the first 5,000 will be charged $20. The registration covers all online educational sessions and events as well as access to all archived sessions through April 30, 2021. Read the full release here.
Kansas Grain Sorghum Welcomes New Conservation & Sustainability Fellow, Sanders Barbee
The Kansas Grain Sorghum Producers Association (KGSPA) recently named Sanders Barbee as the organization’s Conservation & Sustainability Fellow for 2021. In this role, Barbee will assist Kansas Grain Sorghum to connect sustainability projects with farm-oriented programming. She will also work with the staff of National Sorghum Producers (NSP) to continue fulfilling the requirements of the organization’s partnership with the Kansas office of the Natural Resources Conservation Service (NRCS). Specifically, Barbee will work to collate on-farm information and sustainability practices to increase farm conservation literacy. Read the full release here.
U.S. Food Sorghum Featured in Japanese Food Journals
Health-conscious Japanese consumers have new recipes to try after U.S. food sorghum was featured in two food journal articles in late 2020. The placement of these articles was the latest in the U.S. Grains Council’s (USGC’s) long-term effort to establish and expand a niche, value-added market for U.S. sorghum in Japan. The Council has conducted promotion efforts for white food sorghum and white sorghum flour in the Japanese market for the past few years. Japanese food sorghum demand remains small but steady at around 200 metric tons, roughly 7,900 bushels, per year. The Japanese market now includes more than 50 food products with sorghum as an ingredient. Read the full article from USGC here.
Sorghum Smart Talk
On this week’s episode of Sorghum Smart Talk, host John Duff visits with Daniel Sell—better known as Farmer Dan. Daniel describes his family’s farming operation in the Texas Panhandle, his experience on social media and how he advocates for agriculture to diverse audiences. To learn more about Dan and his online, click the image below or visit SorghumGrowers.com/podast to listen!
Sorghum in the Spotlight:
Mostly solid week for U.S. export sales - Brownfield Ag News
New herbicide technology approved for sorghum - High Plains Journal
Pivot Bio offers N-producing microbe for grain sorghum - Successful Farming
Ag groups back Tai USTR nomination - Agri-Pulse
How to diversify crop rotation via field peas, sorghum and polycropping - Aberdeen News
Nebraska Sorghum executive looking to expand and diversify sorghum markets - WNAX
Energy sorghum may combine best of annual, perennial bioenergy crops - High Plains Journal
New guide outlines management strategies to battle sorghum insect pests - Entomology Today
Upcoming Events
Feb. 18-19 Agricultural Outlook Forum - Virtual
Feb. 26-27 Mid-South Farm and Gin Show - Memphis, TN
March 2-5 Commodity Classic - Virtual
April 2 Good Friday- 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.