China Trade Developments Bring Optimism to Kansas Sorghum Farmers

The contents of this blog come from an interview with Adam York, CEP of Kansas Sorghum.

After more than a year of uncertainty, Kansas sorghum producers are feeling a renewed sense of optimism following a recent meeting between President Trump and the President of China. For months, the Chinese market — a major buyer of U.S. sorghum — has been effectively closed, leaving Kansas growers waiting for answers. Now, it appears that progress may finally be on the horizon.

A Year of Waiting for Answers

For the past nine to twelve months, sorghum organizations at the state and national level have been working tirelessly to reopen the Chinese market. Kansas producers, many of whom planted their crop last spring counting on strong export demand, have been caught in the middle of global trade tensions.

During the Asia-Pacific Summit in South Korea last week, President Trump and his Chinese counterpart met to discuss easing tensions. The talks appear to have revived hopes that China will once again become a major buyer of U.S. sorghum — a crop that has long been a key link in U.S.–China agricultural relations.

“China has a billion mouths to feed, and U.S. sorghum is a product they want and need,” Adam York, CEO of Kansas Sorghum, explained. “We’re greatly optimistic that the market is reopening or about to reopen, and we’re looking forward to additional announcements by the end of this week.”

What Reopening the Market Means

Historically, China has purchased between five and six million metric tons of U.S. sorghum annually — roughly half of total national production. Sorghum remains an attractive option for Chinese buyers because, unlike other crops, it faces no tariff rate quota (TRQ) restrictions.

That gives it a major cost advantage, especially when compared to Chinese domestic corn prices, which hover around $8 a bushel. Without tariffs and quotas, U.S. sorghum can be competitively priced for the massive Chinese swine industry, one of the largest in the world.

Representatives from Kansas and U.S. sorghum organizations have continued outreach efforts, even hosting Chinese buyers in western Kansas this past October during the Sorghum Harvest Showcase.

Farmers Await Market Response

Despite the encouraging diplomatic developments, Kansas farmers have yet to see immediate price movement at the local level. Because there is no futures contract for sorghum, it’s pegged to the price of corn. That means local elevators aren’t yet reflecting the optimism in global trade talks.

“Right now, we’re still waiting to see basis changes at the county elevator,” York

said. “Corn prices aren’t shifting much due to tariff quotas, so sorghum hasn’t felt that movement yet.”

However, producers are currently harvesting what could be a record-breaking crop thanks to unusually high rainfall — up to 35 inches in parts of western Kansas. While that’s great news for yields, it also means additional downward pressure on prices unless demand picks up quickly.

There has already been one bright sign: a ship carrying U.S. sorghum bound for China left port earlier this week, purchased by a state-owned enterprise. More trade activity could follow after tariffs officially roll off on November 10.

A Long Time Coming

This moment represents years of hard work and persistence from Kansas and national sorghum groups. The Kansas Sorghum Producers Association, National Sorghum Producers, and the United Sorghum Checkoff Program have all played vital roles in keeping trade relationships alive, even during market shutdowns.

“This has been front of mind for a year,” York said. “Grower checkoff dollars have helped us maintain and build these trade relationships not just with China, but around the world. Farmers can be confident that their investment is paying off.”

As combines roll through Kansas fields this fall, producers remain hopeful that renewed access to China’s market will bring stronger prices — and a well-deserved payoff after a long season of uncertainty.