The Sugar Beat

“Raw cane sugar prices are critically low and producers are in danger of forfeiting their loans to the government as early as July 31,” read the letter.  “Forfeitures would be counter to Congress’ specific Farm Bill directive to USDA to avoid sugar loan forfeitures.”

The price of raw sugar has plummeted by 15 percent since last summer, due in part to an August USDA decision to increase sugar imports. Industrial food manufacturers are currently pressuring the USDA to increase imports even more; a move that would further decrease sugar prices and harm already financially burdened sugar farmers.

“[C]ane producers are suffering huge losses because of depressed prices,” the American Sugar Alliance explained in its letter. “The low raw sugar prices are coming at a terrible time, as producers cope with higher prices for key energy-related inputs over the past two years.”

The 2008 Farm Bill contains tools to help producers better cope with low prices and avoid forfeiture.  A provision that enables unneeded sugar surpluses to be turned into ethanol is particularly important to avoiding forfeitures and saving taxpayer dollars.

During his confirmation process, Secretary Vilsack told Congress: “U.S. sugar producers face the same challenge to profitability that so many agricultural producers face today—falling prices and higher production costs…I look forward to working with [Congress] to establish policies that support sugar producers and achieve the various goals established by Congress for the functioning of these [sugar] programs.”

America’s sugar growers are hopeful that this pledge made in January will translate into quick action on Farm Bill implementation.