Sorghum Checkoff assessment Q&A
When the Sorghum Checkoff was established in 2008, the board of directors made the decision to base the assessment on a percentage of the net price. Therefore, when prices are low, the checkoff is lower, and when prices are high, the checkoff is higher. The assessment of grain sorghum comes to just over one half of a penny per dollar paid for the load of grain.
Who collects the Sorghum Checkoff assessment?
These dollars are collected by the first purchaser to which a producer sells grain. This may be the elevator, ethanol plant or livestock operation. On forage sorghum, collection only occurs on forages sold. For example, a producer who sells forage sorghum to a neighboring dairy will pay the assessment. However, dairymen who grow and utilize their own sorghum silage or hay will not pay an assessment.
How can I calculate my assessment?
Grain assessment = Net Market Value x .006
Forage assessment = Net Market Value X .0035
What is the ‘Net Market Value’ of my sorghum?
Net market value is the value found by multiplying the new market price by the appropriate quantity of the volumetric units, or the minimum value in a production contract received by a producer for sorghum. This is calculated after adjustment for any premiums or discounts which may include the quality premiums and discounts, storage charges, handling charges, drying charges and freight if paid by all who deliver to the first purchaser.
How do I know I have paid the assessment?
First purchasers are required to provide a receipt indicating payment of the assessment. This receipt should be any document issued by the first purchaser that contains the information documenting evidence of payment.
What is the difference in grain sorghum checkoff rates and forage sorghum checkoff rates?
Grain sorghum is calculated at 0.6 percent of the net market price per bushel and forage sorghum is calculated on 0.35 percent of the net market price per bushel.