Challenges Facing Kansas Farmers Amid Diminished Markets

By Morgan Chilson

TOPEKA — Kim Barnes is turning to his extensive network of contacts to sell 1.7 million bushels of grain sorghum after cuts to federal programs and international trade complications led to market chaos. This month, the Pawnee County Co-Op in Larned is shipping 1 million bushels of last year’s product by rail, a move that could impact sales for this year’s crop, according to Barnes, the co-op’s chief financial officer.

Like many in the agricultural sector, Barnes is concerned about the ongoing struggles in milo sales and how Kansas farmers will navigate profit generation amid rising farming costs.

Market Conditions: A Grim Reality

With tariffs and trade wars creating hurdles, the Trump administration’s decision to cut the U.S. Agency for International Development program has significantly affected markets for Kansas grains. At 70 years old, Barnes recalls previous agricultural challenges, but the current landscape is particularly stark.

“If we look back to 2016, wheat was priced at $2.88 a bushel, corn at $2.82, soybeans at $8.90, and milo at $4.32 a hundredweight,” Barnes reveals. “By the end of 2022, these prices surged, with wheat at $8.48, milo at $12.82, corn at $7.88, and soybeans at $14.94.” Today, however, the situation is different. Current prices reflect a significant downturn, with wheat at $4.22 per bushel, milo at $5.71 a hundredweight, corn at $3.90 per bushel, and soybeans at $9.34.

Adding to the concern, Kansas farmers are reporting excellent crop yields this year thanks to favorable weather. “The prediction for nationwide production is about 9.9 million metric tons. Typically, we hover around 10 million,” explains Andy Hineman, vice president of the Kansas Grain Sorghum Producers Association.

International Trade: Lost Markets

Historically, approximately 60% of the milo crop has been exported, with 90% of those exports destined for China. However, with that market largely inaccessible now, farmers are searching for alternatives.

“There’s a strong push to enhance domestic use of milo and discover additional markets,” Hineman states. “China has traditionally been our main export partner, and not having them has certainly posed challenges.” Potential new markets in Mexico and India are under exploration, as well as domestic options. Hineman notes recent FDA studies examining milo for human consumption, a shift from its typical use as a feed crop.

“While historically milo has been primarily for feed and ethanol, we are seeing smaller mills producing milo flour and sorghum foods,” Hineman says. “The FDA’s involvement in this area is promising.”

Nick Levendofsky, executive director of the Kansas Farmers Union, emphasizes the importance of this market diversification. “If China is closing its doors, we need to find another way in. Right now, India seems to be a potential opportunity,” he advises.

The Local Impact

As farm incomes decline, the ramifications extend beyond individual farmers to the entire community, according to Barnes. Local businesses often suffer when agricultural income and spending diminish. “Our co-op pays $3.8 million in property taxes and over $34 million in labor, showing the substantial economic impact agriculture has on local areas,” he explains.

Barnes mentions that every dollar generated in agriculture contributes about seven times to the local economy, highlighting the interconnectedness of farming and community health.

Some bankers are becoming more conservative with loans, focusing only on land-secured agricultural loans for the first time, which reflects growing concerns within the industry. Kevin Swayne, president and CEO of High Plains Farm Credit, notes, “While we face rising input costs and constrained margins, we are focused on partnering with farmers to navigate these challenges.”

As Barnes prepares for upcoming commodity conferences to connect with international buyers, he is actively seeking new markets. “I was taught to dream and look for the silver lining, which is why we are proactively reaching out to create relationships and facilitate sales,” he says.

Overall, the challenges facing Kansas farmers today require resilience and innovation as they work to adapt to shifting market dynamics and repeatedly strive for stability.

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