Ethanol Market

(Jamie) We’re back with Duane and Jesse who talk about challenges in the ethanol market.
(Duane) Duane Toews joining you at the Kansas Energy Conference in Topeka, Kansas, and a chance to catch up with Jesse McCurry with the United Sorghum Checkoff Program. And Jesse you were on one of the panels that was talking about agriculture issues and primarily water, but ethanol is certainly a bigger piece of the puzzle right now for most sorghum growers. (Jesse) The ethanol market continues to be a major piece of our demand puzzle in Kansas. And one of the areas that we can grow is to have some more higher blended fuels in Kansas and try to get more in to E-15. So we’re excited about some of the prospects There’s some challenges in the ethanol market, but at least it’s there for sorghum growers and it continues to be very important. (Duane) Obviously the 500 pound gorilla would have been China and what it did for the sorghum market, sorghum growers. Great opportunity but we know China is typically not the most reliable market long term at times. And having a diverse product in a diverse market is pretty important. (Jesse) At least having a foothold for sorghum in China is a step. And you’re right, that’s why we need to continue to push market demand across the country, whether that’s sorghum into pet food or sorghum into human food or ethanol, or potential green chemical plastic-type use we have to have a portfolio that is able to step in and out of the market to try to keep prices up as close as we can to corn and in some cases over corn. (Duane) As far as the Energy Conference, some of the points that you made for those in attendance in that session, water conserving crop, but an energy efficient crop when we think about sorghum long term. (Jesse) Yea, we continue to be impressed by the ingenuity of our farmers, whether that’s new irrigation systems or rotation or no till and why and how they use energy and different crop decisions. It’s a complex picture on how and when a producer decides to plant a crop, but they’re doing it better and better with less. And they’re going to have to, given the water situation and I feel the message of sorghum being a more… a crop that’s advancing in technology and has some better things going for it, at least makes that part of their decision making process. (Duane) Our thanks to Jesse McCurry with the United Sorghum Checkoff Program, joining us at the Kansas Energy Conference in Topeka.
(Jamie) Thanks again for joining us at the Kansas Energy Conference in Topeka. I’m your host Jamie Bloom and I hope you enjoyed today’s show. See you next week on Farm Factor – we’re here every Tuesday on AGam in Kansas.

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