Sugar Industry is Under Pressure. Congress Can Help.
This op-ed was originally published in Inside Sources
Rural America is in crisis. What is at stake goes well beyond the future of American farms; it’s blue-collar manufacturing jobs, small businesses on Main Street, and the homegrown, made-in-America food on our grocery shelves and kitchen tables.
We were on Capitol Hill recently sharing our stories as sugar beet and sugarcane farmers, proud to grow an essential ingredient in the food we eat; as fathers, stewarding the way for the next generation in the field; and as businessmen, cognizant of the unsustainable financial pressures squeezing family farms.
Producing America’s sugar has always taken hard work, dedication and a little bit of luck. It also depends on strong federal farm and trade policies because the global sugar market is among the most distorted. Foreign governments pour billions into subsidies, then dump surplus sugar at artificially low prices, forcing American sugar beet and sugarcane farmers to compete on an unlevel playing field. India subsidizes its sugar industry by $17.6 billion, according to U.S. government reports.
Those foreign subsidies increase world sugar production and lower the world price. Surplus cheap, subsidized sugar has made it easier for highly subsidized foreign sugar to enter our market, taking away sales from our companies and causing the price of domestically produced sugar to fall precipitously. Over the last two years, U.S. sugar prices have dropped by more than a third. American sugar beet and sugarcane farmers have lost $2 billion in potential income due to highly subsidized foreign sugar.
The drop in U.S. sugar prices is challenging enough on its own. However, the squeeze is tightening: our costs on the farm, and the costs in the factories, mills, and refineries that process our crops, have risen sharply.
Like other farmers, we are bearing the increased costs of diesel fuel, crop protection and nutrition inputs, farm equipment, and the highly specialized machinery required to cultivate sugar crops. For example, the price of a 340-horsepower tractor has increased by more than $200,000 in the last five years. Tractors are essential tools on the farm, and we put hundreds of hours of heavy work on those machines every year; a breakdown on a used machine that has become too costly to replace means lost hours in the field and potentially negative effects to the crop.
On-farm costs for sugar beet and sugarcane producers have increased by more than 30 percent over the last five years. America’s farmers, including sugar crop farmers, were already operating on thin margins. Even with higher yields in the field, the year-over-year decline in prices has led to a substantial decrease in profit margins. Nationally, sugar beet and sugarcane farmers are forecast to suffer nearly $680 million in economic losses for crop year 2025, equating to a range of losses on a farm-by-farm basis. On average, sugar beet farmers lost nearly $500 per acre.
For farmers with significant losses, it means tapping into their equity just to keep the lights on and the tractors running. It’s untenable.
Finding adequate labor for our farms and the factories that extract sugar from our crops has also become increasingly difficult and more expensive. The reality is that the population in rural America is shrinking, and our farms and factories need an available and reliable workforce to plant, tend to, harvest and process our crops and move American-made sugar to food production lines and grocery store shelves.
However, the workforce programs our farms and factories depend on have been left virtually untouched since the 1980s, and their complexity is making them unworkable for our farmers. Increased costs and capital investments required to run our factories and mills efficiently have further eaten into our bottom lines.
Congress has repeatedly recognized the important role that American-made sugar plays in supporting our national food security, and we are grateful for its bipartisan support for strong farm and trade policies. Ensuring that we as a nation can feed ourselves is not a red versus blue or rural versus urban issue; it’s an American issue.
Over the next few weeks, more than 75 sugar beet and sugarcane producers nationwide will take valuable time away from their farms to meet with members of Congress. We want lawmakers to understand firsthand what happens when a farm goes under or a factory is shuttered, such as when we lost the last sugar beet factory in California last year.
It is a hopeful sign that the House Agriculture Committee will consider a new Farm Bill, providing rural America with greater certainty. We appreciate the Agriculture Committee leaders from both sides of the aisle and hope to see a new Farm Bill become law this Congress.
We also hope that timely and meaningful economic aid will provide a lifeline as farmers head into the fields for spring planting. In January, the American Sugar Alliance co-signed a letter led by the American Farm Bureau Federation to House and Senate leadership, highlighting the alarming situation in farm country and asking Congress to provide immediate economic assistance.
We know that farming is never easy, but the challenges abroad and at home represent a threat to American sugar production that requires immediate action. The strength of our homegrown food supply, our rural communities and our family farming legacies relies on the continued bipartisan support for strong farm and trade policies.







