U.S. agriculture is facing a deepening crisis. The July trade report shows a nearly $5 billion agricultural trade deficit, pushing the year-to-date shortfall to nearly $39 billion—well above last year’s record pace. Sorghum is on the front lines of this downturn. While new-crop sales posted gains last week, overall exports remain weak, and bids in parts of the Sorghum Belt are well below the cost of production.
The loss of the Chinese market (historically 70-90% of sorghum exports) has hit sorghum harder, proportionally, than any other major U.S. commodity. Hundreds of millions of bushels need to move in the coming months to prevent further harm to producers and the overall industry. This situation is compounded by high input costs, leaving many growers looking at being deep in the red.
NSP has made clear to Congress and the administration that solutions must include secure, fair, and reliable trade agreements to prevent market displacement and protect the $1–2 billion in annual export value sorghum generates.
We are confident in the administration’s negotiating skills and their ability to deliver a deal. And we understand these negotiations are complex, but U.S. sorghum farmers need results.
~NATIONAL SORGHUM PRODUCERS
