Sorghum industry proposes national checkoff

By Jennifer M. Latzke

Change is on the horizon for sorghum growers across the nation.

At the summer National Sorghum Producers Board of Directors meeting Aug. 15, in Lubbock, Texas, directors voted unanimously to move forward with the process of creating a national checkoff program. A national sorghum checkoff would provide funding for research, promotion and information dissemination and would operate independently of the national association and its legislative lobbying efforts.

National Sorghum Producers' current funding comes from the seven state sorghum checkoffs in existence, Kansas, Texas, Nebraska, Arkansas, Louisiana, Oklahoma and Maryland, as well as private industry funding and producers' memberships. Each state's participation and checkoff rates vary. NSP gave the example that Kansas's assessment on grain sorghum is one-half cent per bushel, whereas Oklahoma has a checkoff of one penny per bushel and Texas has a checkoff of one penny per hundredweight. "If checkoffs were in place for states without sorghum programs, the research funds made available would equal the budget of the second-largest sorghum-producing state," according to a release from the NSP.

The two largest sorghum-producing states are Kansas and Texas, and they fund sorghum research at a lower per acre rate than the other major commodities produced in their states, such as wheat, corn and cotton. In order to increase profitability for sorghum growers, investment should be strengthened across the board, according to the NSP.

"Research is a key to a new beginning and this checkoff could be a vehicle that allows us to move research forward on a national level," said NSP Chief Executive Officer Tim Lust. More focused research dollars could bring valuable improvements to the crop, he said. Also, with the growth of forage sorghum acres, and the increasing role grain sorghum plays in U.S. ethanol production, the industry needs a more stable source of funding for research, promotion and information.

Today, sorghum isn't a high research priority among private industry, which can afford the high cost of pilot projects but sees a lower rate of return on the investment. In the private sector, other crops such as corn, cotton and soybeans often take first place in the research race. Current public sorghum research funding is falling behind and in order for improvements to be made in the crop that will benefit growers and end users, it must come from somewhere. A national checkoff could be one answer to this dilemma.

"Like many farmers, I need sorghum in my crop rotation," said NSP President Greg Shelor, Minneola, Kan. "But to increase profitability, we have some basic needs like better grass and weed control technology. We also need to increase our yields." Checkoff dollars would be spent to find a technology that would allow for over-the-top weed and grass control in sorghum; increase crop yields by 50 percent by 2020; conduct research into using forage sorghum as a cellulosic (biomass) energy crop; and identify new industrial uses for sorghum. Goals in the promotion and information portion of the checkoff would include maintaining and growing international marketshare; promoting sorghum as a domestic food product; and encouraging a greater use of sorghum in ethanol production.

"If we can meet our most pressing needs, producers will continue to see expanded opportunities for sorghum," Lust said. "If a national checkoff is approved, NSP and a national board would be two different organizations, each focusing on two different missions. NSP solely would focus on legislative and regulatory efforts and the checkoff board would focus on research, promotion and information."

During the recent NSP Board meeting, the cornerstone issues of a national checkoff were discussed at length--assessment rates, representation, and administration and passback. NSP President-elect Dale Murden, Monte Alto, Texas, served as the chairman of the National Sorghum Checkoff Committee, which included producers and state sorghum staff. "After several meetings, phone calls and a lot of research, our committee felt that a national sorghum checkoff would help producers across the country to realize better returns and profitability through a more focused research approach," Murden said. "Profitability is certainly what drives producers and what will drive the priorities of a national sorghum checkoff."

The most challenging aspect of any checkoff is deciding the assessment rate. Sorghum is even more challenging because of its many different segments. Sorghum is grown for feed, food, grain, seed, forage and silage, as well as for the burgeoning ethanol industry. The NSP directors recommended that grain sorghum, sorghum seed production and silage sorghum should be assessed, with different assessment rates for each segment. De minimis amounts will be in effect for grain and silage.

Like other national checkoffs, the National Sorghum Checkoff Board would direct the national program with oversight from the Agricultural Marketing Service of the U.S. Department of Agriculture. The Checkoff Board would consist of at least 12 sorghum producers who contribute to the program and a member of the general public. Nominations would be made by AMS-certified organizations representing sorghum producers and their interests. The U.S. Secretary of Agriculture would then appoint Checkoff Board members from the nominations.

Assessments would be gathered directly by the National Checkoff Board. But, for some states with current sorghum checkoff programs in place, handlers would continue to send their sorghum checkoff dollars to the state departments of agriculture, that would in turn forward those funds to the National Board. A passback provision would allow the National Checkoff Board to pass back up to 25 percent of a state's contribution to state programs for research, education and promotion. Additionally, states can apply for more funding for other projects as needed--as long as the projects fall under the research, education and information clause.

A national sorghum checkoff would fall under 1996 generic checkoff legislation that also covers the lamb and blueberry industries.

The sense of urgency is also due in part to a new election cycle gearing up. With the focus on the 2008 Presidential race already beginning, a change in administration could slow the process.

"While the sentiment is to move forward, there are certainly more details to work out and we encourage producers to visit with the board members who represent them or to call our office," Lust said. Producers with questions or suggestions are asked to call the NSP office at 806-749-3478, or visit with their state sorghum organizations.

Date: 8/24/06

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