2

As we come to the close of the 2017/2018 financial year, I can’t help but be somewhat happy the year is ending. Although we experienced many positives throughout the year, they were overshadowed by the many trade concerns that hampered sorghum exports. These trade concerns continue to exert pressure on the marketplace, but there is light at the end of the tunnel as export market price remains positive to corn even with limited to no shipments. This demonstrates the continued competiveness of sorghum in a variety of countries, so I remain optimistic of sorghum’s role in the export market and look toward positive sales in the near future. Enough with the doldrums of last year.

Leadership Sorghum Class IV began this quarter! This is an exciting time to see new faces in a new leadership class that can continue to tell the sorghum story. Leadership Sorghum prepares class members to become positive role models for agriculture and advocates of the sorghum industry. Learn more about Leadership Sorghum Session 1 in this quarterly report and at SorghumCheckoff.com.

Market development of the Sorghum Checkoff continues to evolve, and many activities occurred through the quarter ranging from trade shows to trade missions. Remaining active in marketplaces is key to capturing consumer and end-user awareness allowing for the potential development and expansion of sorghum’s role in markets. We understand our role must be to garnish demand and increase value allowing for sorghum farmers to reap increased financial success.

Likewise, activities in the crop development side remain a focal point for the Checkoff. As we remain active providing management education and targeting specific research that will help bring much needed technology to your field. We welcome the opportunity to share ongoing programs intended to generate results in the near future.

The year has ended, and it is time to turn the page and charge forward with full force. The Sorghum Checkoff Board of Directors has undergone a strategic review and remains focused on maximizing the potential of the Checkoff for U.S. farmers. Likewise, staff is reviewing plans, centering priorities and preparing for a successful 2018/2019 year. We hope you remain engaged in the activities of the Sorghum Checkoff, and we welcome your comments and discussions.

NEW BEGINNINGS

Sorghum Checkoff Executive Director

3

COMMUNICATION DIRECT

Sorghum Checkoff Travels to Meredith CorporationIn September, Jennifer Blackburn, Sorghum Checkoff external affairs director and Suzanne Levy, communications firm representative with ER Marketing, traveled to Meredith Corporation, the home of the largest magazine production company in the world including both Successful Farming and Better Homes and Gardens, in Des Moines, Iowa. Blackburn and Levy worked with the Meredith team to update photography for the Sorghum Checkoff’s consumer website and digital creative for the next year. Meredith has been a partner with the Sorghum Checkoff for the last three years, assisting with recipe development through their Better Homes and Gardens test-kitchen and promoting sorghum use in recipes in magazines and many of their other consumer brands.

September Campaign on Whole Grains MonthSeptember was Whole Grains Month, and the Sorghum Checkoff (USCP) celebrated by sharing facts about sorghum as a whole grain. USCP promoted sorghum’s nutrition potential as a whole grain food through multiple social media posts, with a total organic reach of 1,343 people. It was also promoted through the release of several whole-grain focused recipes and blogs on SimplySorghum.com.

Communications Team Attends Ag Media SummitThe Sorghum Checkoff (USCP) and National Sorghum Producers communications teams were in Scottsdale, Arizona, on August 5-8 attending the 20th annual Agricultural Media Summit where approximately 850 media and communication professionals were in attendance. Jennifer Blackburn, external affairs director, and Shalin Pinkerton, communications manager represented USCP at the conference. Staff learned new ways to tell the sorghum story while improving communications strategies through educational sessions with various agricultural communications professionals. The USCP communications team also received several awards in the American Agricultural Editors Association (AAEA) communications contest.

1st Place: Simply Sorghum Cooking Conversions - Single-Page Editorial Design - Custom2nd Place: Simply Sorghum “The Sorghum Scoop” - Web Design - Electronic Newsletter/Magazine3rd Place: Simply Sorghum Blog - Digital & Social Media Marketing Communications Division Blog 3rd Place: Sorghum Checkoff Annual Report - Special Publication Design

19.9MTotal Impressions

on Facebook

79.2KTotal Impressions

on Twitter

Sorghum Checkoff

10.5MTotal Impressions

on Facebook

50.8KTotal Impressions

on Twitter

SimplySorghum

Social Media Reach July - September 2018163.8%

increase168.2%

increase

CROP IMPROVEMENT

Collaborative Sorghum Investment Program MeetingIn August, Florentino Lopez, Sorghum Checkoff executive director met with representatives from Kansas State University Research and Extension and Kansas Grain Sorghum Commission and Producers Association to discuss joint investments as part of the Collaborative Sorghum Investment Program (CSIP). Cooperative projects were reviewed and updates were given on seed innovation and information management. CSIP aims to increase the average national yield from 61.95 bushels per acre to 100 bushels per acre by 2025 through funding research in beneficial areas such as breeding program developments and field-level management techniques. Sorghum Checkoff staff will continue to monitor the investments in long-term sorghum research and support efforts at CSIP.

Texas A&M University AgriLife Extension Weed Control TrialBrent Bean, Ph.D., Sorghum Checkoff director of agronomy, visited Checkoff Program funded weed control trials being conducted at Texas AgriLife Research and Extension Center near Lubbock, Texas. Bean said there were clearly some differences in treatments that will be beneficial for growers. In addition, a trial examining when sorghum can be planted following an Engenia (dicamba) treatment in failed cotton was examined. Results were surprising, but injury appeared to be closely tied to when a significant rainfall occurred after the Engenia treatment was applied. A summary of the results will be developed and distributed later in the year. These trials will provide useful information for managing a sorghum crop.

Meeting with AdvantaJustin Weinheimer, Ph.D., Sorghum Checkoff crop improvement director, met with representatives from Advanta, a United Phosphorus Ltd. (UPL) company, on July 12 at Advanta’s Biotech Center in College Station, Texas. Updates were given on the status of Advanta’s technology efforts in the U.S., Argentina and Australia through their Pacific Seeds partner. Technology updates were discussed related to Advanta’s recent efforts to bring herbicide tolerance to the U.S. market for grain sorghum. Additional discussions related to traits of value in sorghum included their newly released sugarcane aphid (SCA) tolerant varieties, branded APHIX. Understanding private companies’ efforts to improve sorghum is crucial to leveraging the efforts of USCP.

New Mexico and Oklahoma Field DaysBrent Bean, Ph.D., Sorghum Checkoff director of agronomy, attended sorghum field days near Clovis, New Mexico, and Goodwell, Oklahoma, in early September. In New Mexico, a variety trial consisting of eight sugarcane aphid tolerant varieties planted under dryland conditions was examined with growers. Headworms were present in the varieties at close to threshold levels. Sugarcane aphid infestation varied between varieties and yield will be collected at harvest. At the field day in Goodwell, Oklahoma State University Cropping System Specialist Josh Lofton, Ph.D., discussed sugarcane aphid and Johnsongrass control in sorghum. The field days allowed Bean to visit with producers and university specialists working with sorghum and maintain working relationships going forward. The relationships built will provide another avenue of communication for Sorghum Checkoff employees, as well as face-to-face interaction between farmers and researchers.

4

5

MARKET DEVELOPMENT

Sorghum in the Food Service SectorIn September, Sorghum Checkoff (USCP) field staff and state organization staff met with University of Oklahoma and Oklahoma State University representatives to discuss incorporating sorghum into their food service menu, and Doug Bice, market development director and Brent Crafton, regional director represented the USCP at the North Carolina Restaurant and Food Expo for the first time. Staff promoted sorghum as an excellent whole grain option that can not only meet the needs of special diets, but also offers an on-trend, versatile and nutritious option that satisfies consumers.

NGFA Feed and Pet Food Joint ConferenceSeptember 17-19, Doug Bice, Sorghum Checkoff market development director, and Brent Crafton, regional director, exhibited at the National Grain and Feed Association Feed and Pet Food Joint Conference to promote livestock and pet food sorghum opportunities. Bice and Crafton promoted the use of sorghum to key staff during visits with companies such as, Nestle Purina PetCare, DuPont Health & Nutrition and several others. International market representatives also attended, offering potential export opportunities for sorghum.

U.S. Grains Council Assits in International Trade VisitsCoordinating with U.S. Grains Council and state organizations, the Sorghum Checkoff hosted top Chinese sorghum importers in regions of Texas and Kansas, and five sorghum merchandisers from Texas went to Mexico to meet with U.S. sorghum end-users. The mutual goal of the Sorghum Checkoff and the U.S. Grains Council was to create new markets for U.S. sorghum producers and foster existing relationships between our international trade partners.

U.S. Grains Council Board of Delegates MeetingSeveral Sorghum Checkoff (USCP) staff and board directors attended the U.S. Grains Council 58th Annual Board of Delegates Meeting in Denver, Colorado, on July 30-August 1. Tim Lust, USCP CEO; Florentino Lopez, executive director; and board directors Carlton Bridgeforth, David Freemark and Charles Ray Huddleston, who is the Sorghum Sector Chair for the Grains Council, attended and participated in several Action Team meetings. USCP continues to dedicate time and effort to act as a voice for sorghum producers with industry partners like the U.S. Grains Council as the importance of exports and trade increases.

USCP Participates in Creative Kitchen ClassesThe Sorghum Checkoff (USCP) hosted eight classes for children at Whole Foods Markets across New York City during the week of September 10, all of which were at capacity. The children made and ate their own Greek Sorghum Bowls. The Creative Kitchen led conversations with families about sorghum’s the unique selling points, the forms in which the grain may be purchased, how to cook the grain and more. Participants received sorghum samples to enjoy at home with their families.

Sweet Sorghum Syrup ResearchIn August, a Sorghum Checkoff project through United States Department of Agriculture-Agriculture Research Service (USDA-ARS) was completed demonstrating some valuable health and functionality properties for sweet sorghum syrup. Sweet sorghum syrup ranked well in micro-nutrient profiles and protein levels, performed the best in several types of antioxidant testing and proved to be a beneficial food source for those with digestive health disorders. These findings provide key scientific evidence on sweet sorghum as a healthy alternative for some of the current sweeteners on the market.

6

RENEWABLES

AM Racing Partnership Kicks Off at State Fair of TexasJennifer Blackburn, Sorghum Checkoff external affairs director, and John Duff, Sorghum Checkoff renewables program director attended the State Fair of Texas September 27-29, to kickoff of a partnership with AM Racing and Camping World Truck Series driver Austin Wayne Self. The focus of the partnership is educating consumers to increase usage of ethanol through promotion of higher blends like E15, which is vitally important for the future of sorghum in ethanol. The partnership will include three State Fair of Texas events, three races at Texas Motor Speedway in Dallas and an appearance by Self at a board meeting. In addition to these events, the Sorghum Checkoff (USCP) will also sponsor a race in Kansas with Matt Tifft. USCP is promoting these races in an effort to drive ethanol demand. NASCAR has proven to be an exceedingly effective platform for reaching key fuel purchase decision-makers.

DOE ARPA-E Sustainability VisitsJohn Duff, Sorghum Checkoff renewables program director accompanied Dan Northrup from United States Department of Energy (DOE) Advanced Research Projects Agency (ARPA-E) on a series of visits to the High Plains. Northrup is a key figure in the group behind the large sorghum project, TERRA Energy Partners, and its cousin, ROOTS Energy and Engineering Services. Northrup and his colleagues are exploring a new project focused on developing remote sensors that will gather sustainability data. Among the visits were an afternoon of discussion with Conestoga Energy Partners CEO Tom Willis, a farm visit with Kansas Grain Sorghum Producers Association board member Jeff Zortman, an ethanol plant tour, an introduction to the food industry with Nu Life Market and a stop at the Kansas State University experiment station at Hays where a project examining N2O emissions in sorghum stover is currently taking place. Sustainability continues to be a significant driver of both domestic and international fuel markets. With DOE’s involvement, it is possible to educate key carbon modelers and demonstrate sorghum’s fit with low carbon fuel regimes. For this reason, it remains important for USCP to continue educating DOE and ARPA-E. Staff will continue collecting sustainability data to tell the sorghum story in a way that opens markets.

7

FROM THE FIELD

Whorl Feeding Information Sent to Agricultural AdvisersBrent Bean, Ph.D., Sorghum Checkoff director of agronomy, sent information to his network of agricultural advisers regarding fall armyworm feeding in the whorls of sorghum in August. The message to advisers was to keep in mind damage seldom translates into yield reduction. Bean stated the economic threshold is 30 percent defoliation with the presence of worms in greater than 70 percent of the plants. He also pointed out the ease of overestimating the amount of damage. He suggested growers should be on the lookout for these worms moving to the heads where they can quickly cause significant yield loss.

Georgia Grain Sorghum Clinic & Field TourIn July, the Sorghum Checkoff (USCP) partnered with the University of Georgia (UGA) Research & Extension to host a grain sorghum clinic and field tour at the UGA Iron Horse Plant Sciences Farm near Watkinsville, Georgia. Brent Crafton, USCP regional director; Doug Bice, market development director; and Brent Bean, Ph.D., director of agronomy coordinated the event and provided presentations on multiple production related topics. The agenda included an overview and field tour of statewide variety trial program, agronomic review, best management practices for weed, disease and insect control and key considerations for harvesting and storing grain sorghum. During the event, Fieldale Farms highlighted their commitment to sourcing grain sorghum in the region and from other regions to meet their feed grain needs in support of their broiler nutrition program in Georgia and South Carolina.

Sorghum Crop UpdateBrent Bean, Ph.D., Sorghum Checkoff director of agronomy, reported that although drought reduced grain sorghum yields in the Costal Bend and South

Texas Regions, some of the lost production is expected to be made up by the excellent prospects of high yields in Western Kansas, the upper Texas Panhandle and Oklahoma Panhandle. Sugarcane aphid only reached threshold levels in a few fields in Kansas, New Mexico and Oklahoma, with the hot spot for aphids continuing to be regions in the upper South Plains are parts of the Texas Panhandle. However, even in these regions, in those fields that had sugarcane aphid, a single insecticide application was mostly all that was required. Headworms was an issue in some fields giving us the opportunity to look at a new biological product for corn earworm control. This product has been used in Australia for a number of years but little work has been done with it in U.S. Overall this product looks promising and is more affordable than many of the insecticides currently being used.

8

REGIONAL UPDATE

Sorghum Supply Chain Support for Specialty FeedsSpecialty Feeds located in Memphis, Tennessee, contacted Team Sorghum in early September to identify additional sorghum producers to support their premium dog food products line. Brent

Crafton, Sorghum Checkoff regional director, connected Specialty Feeds with Tennessee River Valley grower representatives. Specialty Feeds now has the ability to source and contract sorghum production with a grower group within the Tennessee River Valley and the State of Tennessee, further promoting their “buy local” ingredient sourcing program.

Cereal Byproducts CompanyCereal Byproducts Company (CERCO), located in Mt. Pleasant, Illinois, contacted Team Sorghum in August to source cleaned grain sorghum for a domestic client. Brent Crafton, Sorghum Checkoff regional director, evaluated the ingredient specifications from CERCO in an effort to identify sorghum distributors within the East region with cleaned grain sorghum which met specifications. The sorghum was delivered to North Carolina, and staff connected the ingredients specialist at CERCO with a merchandiser at Graham Feed located in Terre Haute, Indiana.

AgLaunch Farm Innovation Field DayBrent Crafton, Sorghum Checkoff regional director, and Doug Bice, market development director, provided an overview of commercially available products or applications that utilize food quality sorghum as an ingredient during the AgLaunch Farm Innovation Field Day held on-farm in Savannah, Tennessee, in August. The Commissioner of the Tennessee Department of Agriculture was in attendance to visit with the group. Bice and Crafton showcased a small sample of commercially available products while visiting with folks at the Team Sorghum in-field booth. During this event, USDA unofficially announced a USDA Rural Development-Value Added Producer Grant award to hosting sorghum producer, Alex Forsbach at Growing Acres Farm. This grant award will support the development and marketing of new food-grade sorghum product development in the Tennessee River Valley.

Export Opportunity with AgroFusionIn August, Brent Crafton, Sorghum Checkoff regional director, and Doug Bice, market development director, evaluated a new food quality grain sorghum export opportunity with, a dry goods food service distributor headquartered in Canada. They reached out to the Sorghum Checkoff searching for food quality white grain sorghum producers to evaluate product for a new client request. Staff connected AgroFusion with a producer representative from the North Florida sorghum producer network. The potential direct market opportunity with AgroFusion would provide additional value received.

9

SIGNIFICANT EVENTS

Leadership Sorghum Session 1Leadership Sorghum Class IV kicked off Session 1 on September 5-7 in the Texas Panhandle area where they began orientation and visited several sorghum seed facilities. Day one consisted of media training and a personality test activity. Thursday morning began with a presentation from Justin Weinheimer, Ph.D., Sorghum Checkoff crop improvement director, on sorghum breeding and seed production. The group then headed to several nurseries in the area including Chromatin Inc. and Scott Seed Co. Class members also visited Pioneer Seed near Plainview and Richardson Seeds, LTD. near Vega. Lastly, Texas FFA Foundation Executive Director Aaron Alejandro spoke with the group on properly branding yourself. Session 2 will take place November 7-9 in Kansas.

Florida Nutrition SymposiumDoug Bice, Sorghum Checkoff market development director, and Lauren Harris-Pincus, registered dietitian consultant, showcased sorghum at the annual Florida Food & Nutrition Symposium. Along with promoting sorghum at the exhibit booth, sorghum was featured

as one of the luncheon meals and several renowned registered dietitians also conducted presentations on the benefits of sorghum. One new sorghum-based snack product line, KaPops, was presented for samples at the booth, along with Pop IQ popped sorghum samples. As a result of this effort, the Sorghum Checkoff showcased new sorghum-based product lines and existing sorghum-based product lines to new customers. Several requested USCP be part of future collaborative public relations campaigns as sorghum fits the profile of improved gut health.

Board Directors AppointedUnited States Department of Agriculture (USDA) Secretary Sonny Perdue announced the appointment of four individuals to the United Sorghum Checkoff Program (USCP) board of directors July 5. Members will serve three-year terms. According to the USDA press release, the sorghum farmers appointed to the board are Adam Schindler from Reliance, South Dakota (At-Large); Boyd Funk from Garden City, Kansas; Craig Poore from Alton, Kansas; and Jim Massey from Robstown, Texas. Schindler will fill the at-large seat currently held by David Fremark of St. Lawrence, South Dakota, who will complete his service as board director in December. Funk, Poore and Massey were all reappointed to their respective seats.

Sorghum Checkoff Board MeetingThe Sorghum Checkoff Board of Directors met August 13-15 in Dallas, Texas. The Board adopted a new strategy plan with goals to continue improving the sorghum industry for farmers. The board also approved a new budget for the 2018/2019 fiscal year. Board members made great strides in shaping the Sorghum Checkoff for farm level wins. The next board meeting will take place December 11-13.