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First purchasers alerted to new sorghum assessment processKansas First purchasers across Kansas will receive information by mail in late June explaining a new process for collecting assessments on sorghum that becomes effective July 1 when the state switches from a state-level assessment to the national sorghum checkoff system. The mailing from the Kansas Department of Agriculture explains how first purchasers must calculate the assessment to comply with the national checkoff. For those who have experience with it, it is similar to the national soybean checkoff. Under the national sorghum checkoff, the assessment is based on net market value rather than bushels. Net market value is bushels multiplied by price per bushel after adjusting for any premium or discount. The national checkoff is set at .6 percent of the net market value received by the farmer. Sorghum forage is included in the national checkoff, and its assessment is set at .35 percent of its net market value. A first purchaser is any entity that buys more than 1,000 bushels of grain sorghum in a year, while a forage first purchaser buys more than 5,000 tons of sorghum forage, hay, haylage, billets or silage. Also in the mailing is a revised monthly remittance form, which first purchasers must begin using in July and submit by August 20. The national sorghum assessment has a new refund procedure that can be explained by Craig Shackelford with the U.S. Department of Agriculture. He can be reached at 202-720-1115. Assessment and refund procedures for corn, soybeans, sunflowers and wheat remain unchanged at this time. Kevin Lickteig of the Kansas Grain Sorghum Commission will answer questions about the new grain sorghum assessment procedure. He can be reached at 866-457-6456. Or, questions can go to Erik Wisner, Kansas Department of Agriculture, at 785-296-3210. 7/14/08 Date: 7/10/08
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