The shutdown of USAID’s Food for Peace program, previously instrumental in purchasing surplus grain for foreign aid, has left Kansas sorghum farmers without a viable market. With no domestic or export demand, the industry faces a significant challenge.
Food for Peace
Food for Peace, also known as Public Law 480, was a 70-year-old initiative that utilized American agricultural surpluses to fight global hunger and strengthen trade relations.
Originally championed by President Dwight D. Eisenhower and Senator Bob Dole, the program provided Kansas grain elevators with a reliable outlet for excess sorghum.
Farmers and grain operators, including Kim Barnes of the Pawnee County Co-op, relied on contracts from the U.S. Department of Agriculture (USDA) to move large stocks of milo (sorghum). With the program’s termination, storage facilities are now overwhelmed with unsold grain.
Sorghum Stockpiles at Record Highs
Kansas leads the U.S. in sorghum production, accounting for 57% of the nation’s supply. As of December 1, the USDA reported that Kansas held 151 million bushels of sorghum, a 21% increase from the previous year. Nationwide stocks stand at 210 million bushels, yet market demand is at a standstill.
| State | Sorghum Stock (Million Bushels) | Change from Last Year |
|---|---|---|
| Kansas | 151 | +21% |
| National | 210 | N/A |
Impact on Farmers and the Grain Industry
The lack of buyers forces co-ops and grain terminals to store excess sorghum, leading to increased storage costs.
According to Barnes, their 6-million-bushel facility is nearly half-full with sorghum, a higher percentage than in previous years.
Other crops like corn, soybeans, and wheat continue to find buyers, but sorghum struggles due to low demand in both domestic and international markets.
Trump and Musk Shut Down USAID
Former President Donald Trump and Elon Musk spearheaded the closure of USAID, citing corruption and inefficiency. Trump stated that “USAID has been run by radicals, and we’re cleaning house,” while Musk referred to it as “beyond repair”.
With nearly all USAID employees on leave, there’s uncertainty about whether programs like Food for Peace will return.
Congressional Concerns and Agricultural Policy
Senator Roger Marshall (R-Kansas) supports reforming foreign aid, citing concerns over misuse of funds but recognizing the importance of assisting global food security.
Senator Jerry Moran emphasized the economic benefits of food aid, revealing that $560 million worth of food commodities remain stuck at ports, unable to reach destinations where people are in need.
Future of Sorghum Trade and Aid Programs
With no clear path forward, Kansas Sorghum Producers CEO Adam York has urged the administration and Congress to prioritize American agriculture. Secretary of State Marco Rubio, acting USAID administrator, hinted at future foreign aid programs aligned with U.S. interests, though details remain unclear.
The end of Food for Peace has created serious economic uncertainty for Kansas farmers. With record-high sorghum stocks and no buyers, co-ops and grain elevators struggle to manage storage and pricing.
While government officials debate foreign aid restructuring, farmers remain in limbo, hoping for policy shifts that will restore export markets and economic stability.
FAQ
Why did USAID’s Food for Peace program end?
The program was shut down by former President Donald Trump and Elon Musk, citing corruption and inefficiencies within USAID.
How does this impact Kansas farmers?
Without the program, Kansas sorghum farmers lack a major market, leading to excess grain stockpiles and higher storage costs.
How much sorghum does Kansas produce?
Kansas produces 57% of the U.S. sorghum supply, making it the largest producer in the nation.