Export Report
Sorghum exports continued their strong upward trend this week with China purchasing 4.8 million bushels. This trend has lead USDA to increase their 2020/21 projected exports for sorghum 15 million bushels to 275 million bushels for the marketing year. This update came out the most recent World Agricultural Supply and Demand Estimates (WASDE) report. At only a little over 3 months into the 2020/21 marketing year total sorghum exports have reached 178.4 million bushels, or 65 percent of the projected total. Basis is up on the gulf with sorghum trading at 132 percent of corn and remains steady in the interior.
Biden Taps Vilsack as Agriculture Secretary, Fudge to lead HUD
Vice President Joe Biden has selected former Obama Administration Secretary of Agriculture Tom Vilsack to fill the role of Agriculture Secretary while Rep. Marcia Fudge (D-OH), who was also in the running to lead USDA, will be nominated to be Secretary of the Department of Housing and Urban Development. National Sorghum Producers looks forward to working with Vilsack once again under the new Administration. Read more here and here.
COVID Relief Negotiations Continue
This week, two relief packages competed for the support of lawmakers — a $908 billion package crafted by a bipartisan group of lawmakers and a $916 billion package offered by the Trump Administration. Both packages include relief for agriculture. While there may be some convergence on an overall price tag, the proposals differs on key features, not least of which is the handling of liability protection for employers and aid to state and local governments. Senators Lindsey Graham (R-SC) and Angus King (I-ME) are the latest two senators to try and tackle these thorny issues that have eluded resolution since discussions of a Phase IV COVID-19 relief package began.
However, Senate Majority Whip John Thune (R-SD) expressed doubt the two would ultimately succeed in reaching an accord on the issues. To get around the impasse, Senate Majority Leader Mitch McConnell proposed deferring liability protection and state and local government funding until early next year and moving forward with the rest of the package before Christmas, but Congressional Democratic leadership rejected the idea. Read more here and here.
Tai to Lead USTR
Katherine Tai, chief trade counsel on the House Ways and Means Committee, has been tapped by President-elect Biden for the position of U.S. Trade Representative (USTR). Tai previously spent seven years as a USTR attorney specializing in enforcing trade agreements with China. Read more here.
U.S. Agriculture Exports Surge
U.S. agricultural exports totaled $15.13 billion in October, the start of fiscal year (FY) 2021, up $2.9 billion from September (23.7 percent), according to data from USDA’s Economic Research Service (ERS). That would be the third highest monthly export total based on records dating back to the mid-1970s. The value of agriculture imports reached $11.62 billion for October, up $665 million from September and resulted in an agriculture trade surplus for the month of $3.52 billion. USDA is currently forecasting U.S. ag exports in FY 2021 to reach $152 billion and imports at a record $137 billion. More information here.
In a Win for Biofuels, Trump EPA, DOJ Oppose Refiner Request for Supreme Court Review of Tenth Circuit Decision on RFS Exemptions
In a filing submitted Tuesday, the Department of Justice (DOJ) recommended against Supreme Court review of the Tenth Circuit Court’s ruling earlier this year that invalidated several small refinery exemptions issued by the Environmental Protection Agency (EPA) under the Renewable Fuels Standard. The DOJ filing is in response to a petition submitted in September by HollyFrontier Corporation and CVR Energy, in which the oil refiners ask the Supreme Court to review the Tenth Circuit’s January decision. The petitioners in the original Tenth Circuit Court challenge—the Renewable Fuels Association, National Corn Growers Association, National Farmers Union and American Coalition for Ethanol—welcomed the government’s brief opposing Supreme Court review of the appeals court decision. Read more here.
EPA Proposes Changes to Chlorpyrifos Regulation
The Environmental Protection Agency (EPA) last week proposed changes to the registration and regulation of the insecticide, chlorpyrifos, an active ingredient in a pesticide commonly used to treat sugarcane aphids in sorghum. EPA is proposing: label amendments limiting application to address potential drinking water risks of concern; additional personal protection equipment and application restrictions to address potential occupational handler risks of concern; and, spray drift mitigation, in combination with the use limitations and application restrictions identified to address drinking water and occupational risks, to reduce exposure to non-target organisms. NSP is monitoring the progress of this proposed rule carefully and are working to ensure it does not impact sorghum producers' access to this important insecticide. Read more here.
USDA ‘Debunks’ Myths Surrounding CFAP2, Urges Applications Ahead of December 11 Deadline
USDA has issued a news release to “debunk” myths surrounding the Coronavirus Food Assistance Program 2 that may be holding farmers back from applying and is urging farmers to apply for assistance by the deadline of today, Friday, December 11. The Farm Service Agency has distributed $11.6 billion in CFAP 2 aid and approved 759,089 applications thus far.
USDA Announces Increase to Certain Incentive Payments for Continuous Conservation Reserve Program
USDA is increasing incentive payments for practices installed on land enrolled in the Continuous Conservation Reserve Program (CRP). USDA’s Farm Service Agency (FSA) is upping the Practice Incentive Payment for installing practices, from 5 to 20 percent. Additionally, producers will receive a 10 percent incentive payment for water quality practices on land enrolled in CRP’s continuous signup. Access the USDA press release here.
Sorghum Smart Talk Featuring Miranda Barrett
On this episode of Sorghum Smart Talk, John Duff visits with Miranda Barrett from Texas’ Coastal Bend. Barrett discusses her journey from a nurse in Houston, Texas, to a farmer in South Texas. She reflects on how her role has changed since she arrived on the farm, and what she is looking forward to in the future. Click below or visit SorghumGrowers.com/podcast to listen!
Sorghum in the Spotlight:
Microbes that can reduce drought stress in sorghum identified - No-Till Farmer
NSP's France testifies on ag research and securing U.S. food supply - NewsDakota
Sorghum trade and usage increasing - WJAG
Combating the armyworm: Researcher looks for ways to make sorghum resistant - The Times and Democrat
Upcoming Events
Dec. 23-25 Christmas Holiday - Office Closed
Dec. 31 - Jan. 1 New Year's Holiday - 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.