The United States, Mexico, and Canada signed the North American Free Trade Agreement, otherwise known as NAFTA, in January 2004. The agreement has many purposes, one being to strengthen the rules and procedures of trade so each country prospers in a free trade zone.

As such, the NAFTA agreement limited the amount of corn exports. In 2008, certain policy restrictions on U.S. corn imports will be lifted and it is expected to have a large impact on U.S. sorghum imports.

National Sorghum Producers (NSP) Director Dale Artho, who also serves as Vice Chairman of the U.S. Grains Council, thinks NAFTA has been beneficial to sorghum producers because it has spurred U.S. sorghum exports.

"My thinking is that the Mexicans have been buying as much corn as they want to because they've been able to bypass the regulation by buying corn that was cracked," Artho said. "So, they've been getting that amount of corn in addition to the agreements that they agreed to under NAFTA. I really don't think the amount of sorghum that they they're going to buy is going to be displaced so dramatically as some in the trade suggest. The Mexicans will remain involved in the sorghum market primarily because they have such a domestic industry in the Tamaulipas area and down in the Bajio. Sorghum is the preferred grain to be grown and so consequently, they're going to try to grow as much of their domestic products as they can. The residual market that they need will still be filled by U.S. sorghum."

U.S. sorghum producers have been meeting international needs for sorghum. Artho thinks producers have an advantage in this market.

"For Texas sorghum and U.S. sorghum as a whole, our number one customer is Mexico; our number two customer is Japan; and then our number three customer is Spain," Artho said.

"These agreements that we have in which we sell and export U.S. sorghum and Texas sorghum to these countries is all part of the ongoing market capabilities of U.S. sorghum producers. The transportation really gives a favorable advantage to the Texas sorghum producer along the Gulf Coast and down into the Valley going into Mexico. In terms of transportation, if you are trying to access the market that goes into Japan, now you are starting to get into rail. That starts to benefit the guy along the river system and the rail system that feeds down into the Gulf Coast."

Artho thinks the export system is beneficial to sorghum growers nationally.

"Interestingly enough, the Spanish market is pretty much serviced also out of the Gulf Coast, out of the Corpus Christi area," Artho said.

"That regional flow of grain into the export system, no matter if you're in Texas or if you're in Kansas or Louisiana, Missouri or Nebraska, our infrastructure is geared to fit that. So, it's quite easy for us to export, and it's very beneficial to sorghum growers nationally."

One of Artho's long-term goals is to promote the sorghum producers internationally. He wants to make sure that all trade issues and barriers can be managed successfully so U.S. agriculture can service as many markets as possible internationally, thus ensuring sorghum producer profitability.

NSP represents U.S. sorghum producers. Headquartered in Lubbock, Texas, in the heart of the U.S. Sorghum Belt that stretches from the Rockies to the Mississippi River and from South Texas to South Dakota, the organization works to ensure the profitability of sorghum production through market development, research, education and legislative representation. To learn more about NSP, visit www.sorghumgrowers.com.

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