Commission to Expand Efforts to Build Markets, Profitability for Corn with Checkoff Increase
As of July 1, 2015, the Kansas corn checkoff rate will increase to one cent per bushel. This is the first Kansas corn checkoff rate increase in 25 years. The Kansas corn checkoff is collected by the Kansas Department of Agriculture and is administered by the grower-elected Kansas Corn Commission.
According to Kansas Corn Commission Chairman Kent Moore of Iuka, increasing the checkoff rate was not a decision the commission took lightly.
“Much has changed in the last 25 years, especially the need to build existing markets and create new markets for corn. This reality was best illustrated in 2014 when several market factors proved that demand for corn was not bulletproof,” Moore said. “Events that decreased export demand, and issues that put the ethanol industry at risk all helped to deflate corn prices.”
These factors emphasize the need to build even stronger demand for our crop by:
- Strengthening and expanding our foreign and domestic markets for products made with corn like
ethanol and corn-fed beef and pork
- Building infrastructure and demand for ethanol-blended fuels
- Ensuring our growers are using the most innovative technology and production practices to grow
plentiful and sustainable crops
- Building efforts to tell the story of corn and agriculture to consumers who are becoming increasingly
misinformed and wary of our food system
“This increase will allow the Kansas Corn Commission to aggressively pursue opportunities to build domestic and foreign markets for corn and products made from corn, like ethanol and red meat,” Moore said. “We will also strive to improve sustainable and profitable corn production practices and build consumer understanding and acceptance of new technologies used by corn farmers.”
In 2008, the Kansas Legislature gave the Kansas Corn Commission the authority to increase the checkoff to one cent per bushel. Implementing this increase now will bring Kansas in line with the majority of corn states which have checkoff rates higher than the half-cent per bushel rate, according to Kansas Corn Commission CEO Greg Krissek. Twelve states, including Missouri, Colorado, Texas, South Dakota and Iowa, have a one cent per bushel checkoff rate.
“Even at the new rate of one cent per bushel, the Kansas corn checkoff remains the lowest grain checkoff rate in Kansas,” Krissek said. “The commission looks forward to playing a greater role in market development, research, promotion and education efforts to increase profitability for Kansas corn producers.”
In Kansas, the Kansas wheat checkoff is two cents per bushel. The Kansas sunflower checkoff is five cents per hundredweight. The Kansas corn, wheat and sunflower checkoffs are refundable state checkoffs. The soybean and grain sorghum checkoffs are national checkoffs through USDA with a soybean rate of 0.5 percent of the net market value of soybeans, and a grain sorghum rate of 0.6 percent of the net market value of grain sorghum.
Created in 1977, the Kansas Corn Commission invests the corn checkoff to develop domestic and foreign markets for corn and corn products like red meats and ethanol; to support research to improve production practices and profitability; and to support efforts in promotion, education and advocacy for corn and agriculture. The Kansas Corn Commission is based in Garnett, KS. More information can be found at www.SITEURL.