Region may see a sorghum surge from farmers

Predicted stagnant prices for some popular row crops may turn Southeast Missouri farmers in a different direction when deciding what to plant this spring.

Agriculture experts who often advise farmers are carefully watching whether a premium price for grain sorghum, or milo, will hold come harvest time.

David Reinbott, agriculture business specialist for the University of Missouri Extension in Benton, Missouri, said grain sorghum, though the amount that will be grown still pales in comparison to corn and soybeans planted in Missouri, is making a local comeback as China continues to seek more to buy for use as livestock feed.

Grain sorghum, said Reinbott, also can be imported by China for less money, leading to an estimated 200,000 acres to be planted in Missouri this year, up from 85,000 in 2014.

In 2010, Missouri farmers planted only 6,700 acres of milo.

Missouri is expected to see the biggest percentage jump for the crop planted this year among all milo-producing states.

"It's really a small amount planted, but it can have a big impact," Reinbott said. "It's a crop here in Southeast Missouri where farmers may see a little better profitability."

Farmers in neighboring states such as Arkansas also may grow more grain sorghum this year, according to the United States Department of Agriculture's 2015 Prospective Plantings Report, released Tuesday.

Grain sorghum prices are trending about 70 cents per bushel higher than corn, recent market reports show. If prices hold, that could net farmers about $100 more per acre, Reinbott said.

Farmers in the Boot-heel are considering grain sorghum as they prepare to plant, said Dr. Michael Aide, professor and chairman of the agriculture department at Southeast Missouri State University, as was indicated by a meeting with farmers he attended last week in Kennett, Missouri.

"The price is attractive," Aide said. "Producers are looking around for a better alternative."

Flat, low prices for corn when seed is expensive and the crops require nitrogen and other nutrients, combined with the usual bills for herbicide, irrigation, a crop scout, insurance and harvesting, which can include drying, has farmers wondering whether they can make money from corn this year, Aide said.

In the 2014 harvest, a bumper crop of corn and soybeans combined with good weather helped send prices for corn from $8 per bushel in 2013 to about $4 per bushel.

"Everybody on the planet is growing more, so now we are in an oversupply situation," Aide said. "When I say that, it's just a couple of percent, but it drives the market."

Prices for corn hit high points in 2012 when drought forced demand over supply.

The USDA's Tuesday report shows farmers are responding to the market changes for corn by reporting they intend to plant less of it this year.

Nationwide, corn may be planted at the lowest rate since 2010, and the reduction in planted acres, according to the report, is mainly because of expected lower prices and returns in 2015. Still, the overall national percentage fall from 2014 is just two points, with farmers nationwide forecast to plant nearly 90 million acres of corn this year.

Planting of soybeans nationwide again may reach a record high of nearly 85 million acres, the USDA reported, with Missouri farmers forecast to plant the same amount as in 2014 -- around 5.6 million acres -- as prices seem steady.

Cassy Landewee, who works in crop consulting for SEMO MFA Agri Services in Chaffee, Missouri, said she believes soybeans will be a little more popular to plant this year, but it's "still kind of a wait and see" for local farmers, as many aren't planting yet.

"It's still too wet, so there are some guys starting to put out fertilizer, but that's about it right now," she said.

With rain in the forecast for Southeast Missouri later this week, spring planting of corn overall shouldn't be pushed back too far, Reinbott said. But if the end of April comes and the ground is still wet, farmers may opt for soybeans.

Reinbott said current market reports indicate farmers trying to choose whether to plant corn versus soybeans should consider soybeans are only slightly favorable, and multiple factors can quickly change prices.

Aide also said he expects to see planted acres of rice increase in Southeast Missouri, and the USDA also indicated there may be a rise.

Planned acreage for cotton in 2015 is estimated to reach only 70 percent of the amount planted in Missouri in 2014, according to the USDA report.

eragan@semissourian.com

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