For decades, ethanol has been one of the most reliable domestic markets for U.S. sorghum. Each year, ethanol producers use up to one-third of the nation’s sorghum crop, providing a steady, value-added outlet for farmers across the Sorghum Belt. While other markets fluctuate due to trade policies and global demand shifts, ethanol plants have remained consistent buyers, ensuring sorghum plays a vital role in the renewable fuel industry.
Ethanol’s demand for sorghum is significant and deserves greater recognition in today’s discussions about agricultural markets. While food aid remains a valuable part of global efforts, it accounts for less than 5% of total sorghum use. In contrast, ethanol presents a stable, long-term domestic market that consistently supports sorghum growers.
Each year, ethanol plants across the Sorghum Belt provide a reliable, value-added outlet for sorghum, reinforcing its role in renewable energy while strengthening economic opportunities for U.S. farmers.
There are about a dozen ethanol plants that can be considered “sorghum ethanol producers.” These facilities process both corn and sorghum but consistently purchase enough sorghum each year to provide a reliable market for growers.
In times when export demand slows—whether due to shifting global markets or changing trade policies—ethanol plants step up, maintaining a steady demand for the crop. This dynamic creates a balanced, resilient marketplace where domestic ethanol production and export opportunities complement each other, ensuring that sorghum growers have stable, diversified outlets year after year. The bottom line? Sorghum markets are strong and consistent, driven by domestic demand—not dependent on any one country or global market.
In fact, some ethanol producers in the Sorghum Belt have already increased the percentage of sorghum they’re using. With abundant local supplies available, and higher transportation costs for Midwestern corn, sourcing sorghum just makes sense. The reason is simple: Ethanol producers utilize sorghum as effectively as corn, as it yields the same amount of ethanol per bushel and produces distillers grains that are nearly identical in nutritional value, a valuable co-product used in livestock feed.
However, for ethanol plants in the Sorghum Belt, sorghum holds a distinct advantage. This region is grain deficient, meaning there’s more livestock than locally available grain. That means ethanol plants have to bring in at least some corn from the Midwest, which adds cost and logistical challenges. A high-quality, local sorghum supply is preferable when it’s available. And right now, some plants are grinding more sorghum than they have in years.
The value proposition of ethanol is clear, and it’s one of the reasons the industry continues to thrive even as broader biofuel discussions shift. Unlike some other bio-based products that struggle to compete without subsidies, ethanol has an inherent value in its octane. It is the most cost-effective source of octane in today’s fuel supply, which makes it an almost necessary ingredient in gasoline.
Because of that inherent value, ethanol is not subsidized. Yes, the Renewable Fuel Standard (RFS) provides a floor for demand, ensuring that a certain percentage of biofuels are blended into the fuel supply. But the industry itself stands on its own and has for decades. Ethanol remains competitive not because of government intervention but because it provides a tangible economic benefit to refiners and consumers alike.
Recent federal efforts to expand E15—fuel with 15% ethanol content—signal a promising future for the industry. This growth translates into increased demand for sorghum, further cementing ethanol’s role as a critical domestic market.
Farmers have long known that ethanol provides a critical domestic market for grain. In times of sluggish export markets and shifting global dynamics, it’s crucial to highlight the steadfast role ethanol producers play in sustaining sorghum demand. These plants aren’t just standing in the gap—they’re reinforcing the foundation of sorghum demand in a way that no other market can.
So, while the headlines may paint a picture of uncertainty, one thing remains clear: Ethanol is a strong, stable market for sorghum today, and it’s only going to become more important in the future.John Duff is founder of Serō Ag Strategies and a consultant to the sorghum checkoff program.