Conventional agriculture has paved the way for farmers to make rapid advancements in protecting and promoting soil health, Dr. Rebecca Larson, Chief Scientist for the Western Sugar Cooperative, testified before the House Agriculture Committee, today. “The evolution of conventional ag practices has reduced soil erosion by 35% across the U.S.,” Dr. Larson told Congress. “Soil health is critical for farmers. It reduces crop inputs, increases crop productivity, and instills resiliency in the agroecosystem.”  

Dr. Larson expounded upon data collected from the 800 small family farmer-owners who farm sugarbeets and collectively own the Western Sugar Cooperative. In order to ensure soil health and sustainably grow sugar, Western Sugar Cooperative growers focus on: 

• Conservation tillage: Most Western Sugar Cooperative growers use conservation tillage, improving microbial diversity and adding other environmental benefits. 
• Cover crops: Fall-seeded cover crops, spring-planted rye, and the previous year’s crop residue are all used by Western Sugar Cooperative growers, depending on each grower’s circumstances, to protect their soil. 
• Conservation crop rotation: All Western Sugar Cooperative growers engage in conservation crop rotation to balance nutrient demands and protect biodiversity.  
• Genetically engineered sugarbeets: All of the U.S. sugarbeet crop is genetically modified, requiring less tillage and fewer pesticide applications. 

Armed with these tools, sugarbeet farmers in the Western Sugar Cooperative have reduced erosion by 90%, reduced pesticide usage by 40%, reduced fuel consumption and greenhouse gas emissions by 40%, and increased water use efficiency by 30%. Importantly, farmers have increased yield from 8,000 to more than 11,000 pounds of sugar per acre, an achievement that Dr. Larson called “true sustainable intensification.” 

The U.S. sugar industry has preserved our natural resources, family farms, and rural communities for generations to come. Overall, U.S. sugar farmers produce 16% more sugar on 11% less land than they did 20 years ago.  

As Congress considers the next Farm Bill, Dr. Larson urged members to “invest in outcome-based solutions that keep the farmer in the driver’s seat, as they understand the nuance of their production system.” As dedicated stewards of the land, U.S. sugar producers continue to advocate for voluntary climate-smart policies that allow farmers to achieve their climate goals. 

Learn more about how Western Sugar Cooperative and the entire U.S. sugar industry is executing on its commitment to produce Sugar Sustainably.  

America’s farmers have an opportunity to be “a real hero in our ability to address climate change” through improvements in productivity and climate-smart practices, but a successful climate program “has to work for agriculture.” 

That was the message shared by Robert Bonnie, Under Secretary for Farm Production and Conservation (FPAC) for the U.S. Department of Agriculture (USDA), at the 37th International Sweetener Symposium yesterday. 

Bonnie outlined USDA’s approach to addressing climate change through building broad, collaborative partnerships across agriculture.  

“There’s so much diversity in agriculture,” Bonnie said, “that the approach to climate change can’t be one that dictates practices for low and high. It has to be modern. It has to be producer-led. It has to allow farmers, ranchers, and forest landowners to choose which practices work best for them, and then provides incentives for them to do that.” 

Initiatives to reduce greenhouse gas emissions must recognize the critical role American farmers play in producing a global supply of food and fiber.   

“We have to reduce emissions even while we maintain and enhance productivity. We’ve got to feed 9.5 plus billion people in the world by the middle of the century,” Bonnie explained. “U.S. agriculture is really good at productivity, and it’s really good at efficiency. That’s why I’m optimistic about the ability of U.S. farmers and U.S. forest land owners to be able to address climate change.” 

Thanks in part to strong federal farm policies, U.S. sugarcane and sugarbeet farmers continually invest in new research, technologies, and techniques to boost efficiency and protect our planet. U.S. sugar farmers produce 16 percent more sugar today on 11 percent less land compared to 20 years ago – and they’ve increased yield per acre by 30 percent while using fewer inputs.  

U.S. sugar producers continue to expand on this work and, as part of the Food and Agriculture Climate Alliance (FACA), support voluntary and incentive-based conservation programs that promote resilience in rural communities. 

Uncertainty in the farm economy has presented new risks for U.S. sugar producers. In addition to farm and trade policies that help level the global playing field, U.S. sugar farmers and workers need the Farm Bill to provide a strong safety net and affordable risk management tools. 

Bonnie emphasized the importance of crop insurance as a risk management tool, saying, “crop insurance is critically important for so many folks in agriculture.” He noted that there are ways to increase crop insurance accessibility while improving the products available to farmers. 

U.S. sugar producers are committed to a more sustainable future. A strong Farm Bill that preserves sound U.S. sugar policy and addresses the increased challenges facing farm producers will further this mission while protecting U.S. food production, preserving good American jobs, and supporting the local communities who rely on a vibrant U.S. sugar industry.  

The American Sugar Alliance (ASA) sent a letter to U.S. Senate leadership expressing deep support for the nomination of Alexis Taylor to serve as the U.S. Department of Agriculture’s (USDA) Under Secretary for Trade and Foreign Agricultural Affairs. ASA urges the U.S. Senate to swiftly consider and confirm Director Taylor. In our current uncertain global climate, having an Under Secretary for Trade and Foreign Agricultural Affairs as qualified and knowledgeable as Taylor will be invaluable to all of American agriculture.

Read the full letter here.

The World Trade Organization (WTO) announced earlier this week that trade ministers and negotiators from around the globe will convene the week of June 13 for its 12th Ministerial Conference. In support of these important negotiating efforts, the American Sugar Alliance (ASA) released a new policy statement outlining four recommendations to improve the international trade body’s effectiveness. 

WTO reforms will make dismantling unfair trade practices and subsidies an attainable goal, ASA noted, laying the foundation for a less distorted and more predictable global market.   

A recent WTO dispute case finding the use of subsidies by mega sugar producer and exporter India to be inconsistent with its WTO commitments has served to starkly underscore the urgent need for reform. Despite the WTO’s findings that India vastly exceeded the allowable level of subsidies for its sugarcane producers and also employed WTO-illegal export subsidies, India has vowed to maintain its market-distorting policies as it pursues the WTO appeal process.   

This is a glaring example of the current dysfunction at the WTO that has hindered real reform in the global sugar market. With the Biden Administration’s stated goal of “enforcing global agricultural trade rules” in defense of America’s farmers and food manufacturers, ASA believes now is the time to act. ASA proposes the following reforms:   

• Accountability. Impose more rigorous disciplines on the practice of members’ self-designation of “developing country” status and the accompanying application of “special and differential” treatment. 

• Modernization. Update the methodology by which countries measure levels of government support. The current methodology is based on commodity prices during an arbitrary three-year period in the 1980s.  

• Transparency. Improve the transparency, timeliness, and, importantly, the accuracy of country notifications relating to domestic support and export subsidies.  

• Enforcement. Overhaul the dispute settlement mechanism to ensure that, if necessary, a member’s noncompliance with established obligations can be addressed in a timely manner. 

 “Sugar markets are widely considered to be the most distorted and volatile commodity markets in the world, with billions in foreign subsidies encouraging over production by inefficient producers,” said Dr. Rob Johansson, ASA’s Director of Economics and Policy Analysis. “Unlike other countries, U.S. sugar farmers and workers produce a reliable supply of sugar under some of the world’s highest safety, labor, and environmental standards and at zero cost to taxpayers.”  

“Implementing common-sense reforms can create a WTO that reflects 21st century realities,” said Luther Markwart, ASA’s chairman. “Our industry has long advocated for the verified elimination of all global sugar subsidies and a modernized WTO will place us one step closer to achieving that goal.” 

These reform proposals are also in alignment with the bipartisan Zero-for-Zero approach to eliminating foreign sugar subsidies, which was introduced in Congress last year and is supported by America’s sugar producers. 

WASHINGTON – India’s sugar subsidy regime violates its obligations under a multilateral World Trade Organization agreement, according to the international trade body.

A WTO dispute panel initiated by Australia, Brazil and Guatemala in early 2019 investigated India’s massive sugar subsidy regime and found it was not compatible with New Delhi’s WTO commitments. The panel released its findings in a December 14 report.

India is one of the largest sugar producers in the world, producing more than 30 million tons of milled sugar in most years with the support of government production subsidies. India has also used export subsidies in recent years to help dump 6 to 7 million metric tons of sugar onto an already distorted and depressed world market, helping to drive world prices below the global cost of production.

The panel found that India’s provision of domestic support to its sugarcane producers vastly exceeds the level permitted under the terms of relevant provisions of the Agreement on Agriculture. The panel also found that New Delhi’s prolific use of export subsidies violates relevant provisions of both the Agreement on Agriculture and the Agreement on Subsidies and Countervailing Measures.

“India has not been playing by the rules for years to the detriment of other sugar producers,” said Dr. Rob Johansson, Director of Economics and Policy Analysis at the American Sugar Alliance (ASA). “This case focused on domestic sugar and export subsidies provided by India since 2014 and illustrates how much time these actions currently require to play out. We can now anticipate that India will use every procedural tool at its disposal in Geneva to drag the case out even longer.”

The world sugar market is widely considered to be the most distorted and volatile commodity market in the world, with billions in foreign subsidies encouraging over production. That surplus gets dumped on global markets – depressing prices. Unlike other countries, U.S. sugar farmers and workers produce a reliable supply of sugar under some of the world’s highest safety, labor and environmental standards and at zero cost to taxpayers.

“Our industry has long advocated for the verified elimination of all global sugar subsidies,” said Luther Markwart, Chairman of the ASA. “The panel’s finding in the India case serves as a stark reminder of just how far we have to go in achieving that objective.”

Dr. Robert Johansson will help guide America’s sugar industry in his new role as the Director of Economics and Policy Analysis at the American Sugar Alliance (ASA), effective today. Johansson will provide domestic and international sugar market analysis and evaluate the farm and trade policies that affect U.S. sugar producers.

Johansson joined ASA in January 2021 as the Associate Director of Economics and Policy Analysis. Prior to joining ASA, Johansson was most recently Chief Economist at the U.S. Department of Agriculture (USDA), where he advised the Secretary of Agriculture, directed the analysis of commodities, and managed the designs of various USDA programs.

“Rob has quickly become an invaluable member of our team. He hit the ground running, leading efforts to reaffirm the importance of sugar’s strong domestic supply chain and document foreign sugar subsidies,” said Luther Markwart, ASA’s chairman. “As the Director of Economics and Policy Analysis, we know that Rob will continue his excellent work on behalf of America’s sugar producers.”

“America’s sugar growers and workers have welcomed me with open arms, and it is an honor to serve them in this new role,” Johansson said. “I look forward to working across the industry to continue advancing more sustainable and efficient sugar production and address any challenges that threaten the long-term survival of domestic sugarcane and sugarbeet production.”

Johansson succeeds veteran sugar economist Jack Roney. Roney retired on August 31, 2021, after 25 years with ASA.

The American Sugar Alliance (ASA) supports new legislation introduced today by Congresswoman Kat Cammack (R-Fla.) and Congressman Dan Kildee (D-Mich.) which seeks to zero out the foreign subsidies that make sugar the world’s most distorted commodity market. This legislation levels the playing field and preserves family farms and good-paying jobs, while maintaining a strong and stable domestic supply chain for sugar.

This bill takes a Zero-for-Zero approach to sugar subsidies: only when all foreign countries eliminate their subsidies will the United States give up its existing no-cost sugar policy.

America’s sugar policy offers producers loans that are repaid with interest – not subsidy checks. It’s designed to cost taxpayers nothing.

Despite being among the most efficient and sustainable sugar producers in the world, America’s sugar growers cannot compete against billions of dollars in foreign subsidies. These subsidies drive down world prices for sugar on the global dump market to well below the world average cost of production.

“Time and again, the survival of American sugar producers is threatened by the unfair practices and dumping of cheap sugar by foreign countries. We have to protect our own supply and support the hardworking American sugar producers that bolster our rural communities,” said Cammack. “Free trade must also be fair trade, and we cannot abandon our own production capabilities in favor of cheap imports that destroy livelihoods and our markets. I’m proud to introduce this resolution that will ensure a level playing field and preserve family operations.”

“This bill calls foul on foreign sugar subsidies, finally giving American sugar farmers the opportunity to compete on a level playing field,” said Ardis Hammock, a sugarcane grower on a third-generation family farm in Florida. “Unilaterally eliminating America’s successful sugar policy could put our farms, our jobs, and our nation’s sugar supply at risk.”

“My farm has been in my family for 126 years, and we can only survive to farm for another 126 years if given a fair chance. Representatives Cammack, Kildee and Fischbach recognize the critical threat that foreign sugar subsidies pose to America’s sugar producers, and we appreciate their leadership in introducing this common-sense legislation,” said Daniel Younggren, a sugarbeet grower in Minnesota and President of the American Sugarbeet Growers Association.

The Zero-for-Zero legislation specifically highlights Brazil, India, Thailand, the European Union, Russia, and Mexico for their egregious abuse of sugar subsidies. ASA has extensively catalogued the use of subsidies in these nations, most recently finding that Russia spent $392 million a year in direct and indirect subsidies to bolster its inefficient sugar industry. Unfortunately, this is a common occurrence on the global scale.

Original co-sponsors of Zero-for-Zero include Reps. Michelle Fischbach (R-Minn.), Jim Hagedorn (R-Minn.), Austin Scott (R-Ga.), Rodney Davis (R-Ill.), Clay Higgins (R-La.), Liz Cheney (R-Wyo.), Julia Letlow (R-La.), Garrett Graves (R-La.), and Kurt Schrader (D-Ore.).

Statement from the American Sugar Alliance on the confirmation of Dr. Jewel Bronaugh as Deputy Secretary of the U.S. Department of Agriculture (USDA):

“America’s sugar farmers and workers congratulate Dr. Jewel Bronaugh on her confirmation as Deputy Secretary of Agriculture. Dr. Bronaugh brings a wealth of expertise in promoting American agriculture to USDA as well as a tireless commitment to supporting farmers and ranchers. We look forward to partnering with Dr. Bronaugh to support smart farm and trade policies, maintain a sustainable food supply and continue our investments in strong rural communities. Importantly, we are confident that Dr. Bronaugh’s leadership at the USDA on these issues and more will be pivotal in continuing to move agriculture forward.”

Statement from the American Sugar Alliance in support of the reintroduction of the bipartisan Growing Climate Solutions Act:

“America’s sugar farmers are dedicated to advancing climate-smart policies and support efforts to dismantle technical barriers that impede the ability for farmers to voluntarily participate in carbon markets. The bipartisan Growing Climate Solutions Act is an important step forward and the American Sugar Alliance applauds its reintroduction. We appreciate Senate Agriculture Committee Chairwoman Debbie Stabenow (D-Mich.) and Sen. Mike Braun (R-Ind.) for their work with Sen. John Boozman (R-Ark.) to improve this legislation and ensure it helps rural America further achieve its climate goals.

“A number of farmer-friendly changes have been added to the Growing Climate Solutions Act to achieve funding needs without reopening the Farm Bill or otherwise affecting the existing funding of farm and conservation programs. Importantly, this legislation has already garnered support from a bipartisan group of senators who represent a broad cross-section of American agriculture.”

Statement from the American Sugar Alliance on the confirmation of Secretary Tom Vilsack as the Secretary of Agriculture:

“America’s sugar farmers and workers extend their heartfelt congratulations to Secretary Tom Vilsack on his confirmation as the Secretary of Agriculture. Secretary Vilsack’s support for smart farm and trade policies will allow sugar producers to continue investing in sustainable farm practices, efficient sugar production and strong communities, while keeping America supplied with an essential ingredient. America’s no-cost sugar policy is integral to this success story and we look forward to partnering with Secretary Vilsack and his team at the U.S. Department of Agriculture to continue building a brighter future for American agriculture.”

A collaborative analysis conducted by four agricultural economics professors at the University of Tennessee and Oklahoma State University has found that U.S. sugar prices do not impede the financial performance of sugar-using firms.

The analysis thoroughly examined, and rejected, the claim from sugar-using firms “that as the U.S. price of sugar increases relative to the world sugar price, this negatively impacts their profits.” As the authors note, their findings “suggest that U.S. sugar-using firms pass on higher costs to consumers when relative prices increase or do not pass on discounts to consumers when relative sugar prices decrease.”

This was on full display in the aftermath of the dumping of subsidized Mexican sugar on the U.S. market in 2013. Sugar prices plummeted, costing U.S. producers $4 billion and many sugar workers their jobs. Meanwhile, Americans paid higher prices at the grocery store for sweetened products and manufacturers pocketed the profits.

This report expands upon a well-known 2016 report published by Dr. Alexander Triantis, during his tenure as dean of the University of Maryland business school, and analyzes the financial performance of 26 publicly traded companies that use sugar primarily purchased in the United States. In his 2016 report, Dr. Triantis found that under current U.S. sugar policy, the nine largest publicly traded firms producing sugar-containing products had added jobs, increased production, and far outpaced the rest of the food processing industry in profit returns.

The full report prepared by the University of Tennessee and Oklahoma State University agricultural economists can be found here. This is an independent and peer-reviewed report for which no industry funding was received and which was originally published by Agricultural and Food Economics.

Dr. Karen L. DeLong, one of the report’s authors and an Assistant Professor of Agricultural and Resource Economics at the University of Tennessee, said that the analysis yielded conclusive results.

“The U.S. sugar program buffers domestic sugar producers against heavily subsidized foreign sugar, but sugar-using firms claim that this program maintains artificially high domestic prices and therefore decreases profits. The data show that when all other conditions remain the same, there is no evidence to support these claims,” DeLong said.

In fact, the analysis found the unexpected result that “as U.S. prices increase relative to world prices, sugar-using firms are more profitable.”

“America’s sugar farmers and workers are proud to provide our customers with more than 60 different types of affordable and sustainably produced American sugar,” said Jack Pettus, chairman of the American Sugar Alliance. “This analysis confirms what our industry has long known: the price stability provided by America’s no-cost sugar policy has no negative effect on the bottom line of sugar-using companies.”

Pettus continued, “The pandemic has highlighted the importance of essential products like sugar to be produced in the U.S. and delivered through reliable supply chains. America’s sugar farmers and workers need a strong no-cost sugar policy to give us a fighting chance against excess foreign imports that threaten our ability to produce sugar domestically.”

The chairman of the House subcommittee with jurisdiction over farm commodity programs said yesterday that the unique perspectives and bipartisanship of his panel help it function well for U.S. farmers and ranchers.

“The demographic and geographic diversity inside the House Agriculture Committee make it special,” Congressman Filemon Vela (D-TX) said at yesterday’s International Sweetener Symposium.

Each member has different experiences and priorities to share, which ensures that farm policies work better for the whole agricultural industry, not just a handful of crops, according to Vela, who chairs the House Agriculture Subcommittee on General Farm Commodities and Risk Management. And working with growers of all shapes, sizes, and specialties is a priority for the panel, he said.

“We held our first hearing back in May, and we brought in farmers from all around the country to talk about the general conditions of the farm economy,” he said. “What we learned is that no matter where they came from – we had farmers from California, Texas, Minnesota, Florida and elsewhere – folks are having a very difficult time.”

Some growers are being hit hard by overseas tariffs that have dried up markets, he explained. Others have struggled with weather disasters, are experiencing mounting financial pressures, and have faced losses that traditional risk management tools are not equipped to cover.

Vela said Congress was fortunate to pass the 2018 Farm Bill when it did, because delayed action would have left farmers with fewer tools to weather the storm. That bill included a continuation of America’s no-cost sugar policy, which Vela said is critically important to sugarcane farmers in his district.

“With respect to sugar policy…the approach of leaving well enough alone is the right approach,” he explained. The policy operates without taxpayer cost, and Vela said that he would continue to lead efforts to rebuff any political attacks on sugar farmers in the future.

Similar sentiments about sugar policy were made by lawmakers throughout this week’s meetings, which underscores the thesis of Vela’s speech. Members of the Agriculture Committee are listening to the priorities of their colleagues and are reaching across the aisle to come together on behalf of all farmers, not just those in their districts.

Congressman David Rouzer (R-NC) predicted significant turnover during the 2020 congressional election, and he encouraged agriculture to use the opportunity to work together to educate new lawmakers about the industry’s importance to America’s future.

“Agriculture is a bright spot, and we need to talk more about what we do,” he said at today’s International Sweetener Symposium. “A country that can feed itself and feed the rest of the world is in a dominant position to be prosperous at home and strong abroad.”

Agriculture is an economic powerhouse that creates jobs, provides opportunities in rural communities, and embodies the values that make America great, said Rouzer, a member of the House Agriculture Committee. But not everyone in Congress will understand its importance unless farmers and ranchers speak proudly about their successes and fight for their interests.

Rouzer noted that agriculture’s future success will depend on good farm policies with bipartisan appeal, as well as unity throughout the farm and ranch community. The overwhelming support of the 2018 Farm Bill, he said, was emblematic of what agriculture can accomplish when everyone comes together for the common good of all.

“It’s so critically important for us to remain united with one voice and remain active politically,” he said, explaining that the geographic diversity that agriculture possesses is an asset that can mobilize elected officials from both parties across the country.

Sugar is a good example of the power of a large geographic footprint, he said, because it brings together lawmakers from Midwestern sugarbeet states and sugarcane in the South. It’s little wonder, Rouzer noted, that no-cost U.S. sugar policy remains a fixture in the farm safety net.

“Hanging together and speaking with one voice is critically important to [sugar producers’] ability to protect your interests long term,” he concluded. “As long as I’m in the House, you’ve got a friend here and you always will.”

“I’m proud to stand tall with [U.S. sugar producers] every single day …and I appreciate what you stand for.” That was the message Congressman Richard Hudson (R-NC) delivered at today’s International Sweetener Symposium.

Hudson, who co-chairs the Agriculture and Rural America Task Force, said America’s sugar industry supports thousands of U.S. farmers, thousands of U.S. workers, and billions in goods and services to the U.S. economy. So, supporting a strong U.S. sugar policy was an easy decision for him in the last Farm Bill.

“I want my sugar made here in America,” he explained, noting that he’s worked hard to defeat past attempts to weaken the country’s no-cost sugar policy.

“It would have crushed our domestic industry,” he said of a 2018 Farm Bill amendment designed to gut U.S. sugar policy and outsource our sugar production. “Foreign countries are subsidizing their industries, dumping their sugar, and bottoming out prices…that’s not a free market.”

That anti-farmer amendment was soundly defeated, which Hudson credits to the hard work of sugar producers, farm policy’s bipartisanship, and the solidarity of the agricultural community.

Agriculture is the top industry in North Carolina and in Hudson’s district. He emphasized the importance of agriculture continuing to work closely together to overcome current economic challenges and future political fights.

“I’ve worked hard to be a partner with you and everyone else in our agriculture community,” he concluded. “I strive to be someone you can count on, and I look forward to continuing that partnership.”

Congressman Glenn “G.T.” Thompson (PA), the second highest ranking Republican on the House Agriculture Committee, kicked off the 2019 International Sweetener Symposium this morning by telling sugar producers that his vision for the Committee’s future is to “achieve a robust rural economy.”

“This requires the right farm policy for all our commodities, including sugar, that exceeds the expectations of our farm families,” he said. “If we can exceed your expectations, then rural America is going to do quite well.”

Thompson, who is the Ranking Member of the House Agriculture Subcommittee on General Farm Commodities and Risk Management, explained that he would continue to be a vocal supporter and champion for the country’s sugar producers.

Sugar policy is part of the 2018 Farm Bill and attempts to weaken it by a handful of opponents during debate on the House floor were summarily rejected thanks to Thompson and others.

“We defeated efforts to repeal the sugar program with a remarkable 141-vote margin,” he said. “That type of decisive [vote] should resolve once and for all that our current U.S. sugar policy is good for both the American consumer and for our hardworking sugar producing farm families.”

Thompson thanked the audience for their efforts to help secure a Farm Bill that was passed on-time, and he pledged to continue to fight attempts to weaken sugar policy in the next Farm Bill.

No-cost sugar policy, which is based on loans that are repaid with interest, is particularly important given the heavily subsidized nature of foreign sugar production, he noted.

In addition to maintaining a strong farm safety net, Thompson outlined other areas that he thinks are important for the House Agriculture Committee and Congress as a whole.

“The greatest challenges before agriculture are regulatory reform and resolving trade agreements,” Thompson explained. “Tackling both of those areas will help our farmers compete on a level playing field.”

Thompson also pointed to rural development and expanded educational opportunities as key to helping small towns rebound from current economic challenges and thrive.

A new report analyzing the impact of sugar policy liberalization in the European Union (EU) should serve as a dire warning to those who would like the United States to follow the EU’s lead and unilaterally eliminate U.S. sugar policy without addressing subsidies on the world stage.

This week marks 13 years since the EU first began tearing down its sugar program after the World Trade Organization found it to be in violation of its international trade commitments. Since that time, Europe’s sugar industry has faced an uncertain future – 83 sugar mills closed and 120,000 jobs were lost – and subsidies remain prevalent as prices plummet below the cost of production.

Authored by UK-based sugar policy expert Patrick Chatenay, this report takes a closer look at EU sugar market conditions following the latest chapter in EU’s reform: the end of sales quotas and minimum prices for sugar in October 2017.

“The immediate effects of liberalization have been catastrophic for the EU sugar industry,” Chatenay writes.

Chatenay found that now exposed to the oversupplied and chronically depressed global sugar market, driven by foreign subsidies, sugar farmers have seen an approximately 20 percent drop in prices while large industrial sugar buyers have pocketed $3.4 billion, “with no discernable advantage to the final consumer.”

This transfer of wealth from farmers to food processors has necessitated additional taxpayer subsidies to help prop up Europe’s farmers.  Totaling nearly $700 million a year, EU subsidies have further distorted Europe’s sugar market and driven prices even lower, according to Chatenay.

“EU sugar now operates with fluctuating, distorted and most often depressed world market prices, influenced by widespread government interventions,” the report states. “Not only must its most efficient producers compete with foreign subsidized sugar, but they also face competition from subsidies directed to [less efficient] EU beet areas.”

And this unfair competition is further threatening efficient EU producers and forcing them to cut costs by shuttering factories. Chatenay quoted one official as saying that “10 to 20 sugar [EU] factories will close within 5 years, given that about one-fifth of the EU mills are not competitive.”

Europe’s failed experiment over the past decade should serve as a stark warning to critics of U.S. sugar policy, say officials from America’s industry.

“Europe is often held up as a model for sugar reform, but the facts tell a much different story,” said American Sugar Alliance Chairman Ryan Weston. “European taxpayers continue to spend millions propping up the sugar industry while farmers face bankruptcy. Simply put, unilateral disarmament doesn’t work. A free sugar market will only be realized when every nation agrees to put an end to unfair subsidies that threaten highly efficient U.S. producers”

A recent report released by Texas Tech University put into perspective the harm that widespread government intervention has had on the global sugar market. The report profiled 22 foreign countries, accounting for 80 percent of global sugar production, and documented the widespread use of government support, tariffs, and subsidies that contribute to an unpredictable market.

Conversely, American sugar farmers do not receive government subsidy checks. U.S. sugar policy is based on the use of loans to store sugar until customers need it and then the loans are repaid with interest. This allows the sugar industry to maintain a reliable and affordable supply of sugar for U.S. manufacturers and consumers alike.

“The EU’s struggle to reform its sugar regime makes it clear that the distorted nature of the global sugar market as it stands will never allow for fair competition,” Weston said. “That is why America’s sugar producers are asking Congress to call a global cease-fire on sugar subsidies by passing Congressman Ted Yoho’s Zero-for-Zero resolution. We look forward to the creation of a truly level playing field.”

Members of the American Sugar Alliance (ASA) praised Congressman Ted Yoho (R-FL) for taking decisive action against foreign sugar subsidies with yesterday’s reintroduction of the Zero-for-Zero sugar policy.

Zero-for-Zero proposes dropping America’s no-cost sugar policy in exchange  for the verified elimination of foreign sugar subsidies.

H.Con.Res. 7 details how foreign subsidies distort the international sugar market and hold prices well below the average cost of producing sugar. It specifically highlights Brazil, India, Thailand, Europe and Mexico for their egregious abuse of direct and indirect subsidies.

The billions spent by foreign nations stand in stark contrast to America’s sugar policy, which costs taxpayers $0 because it’s based on loans that are repaid with interest.

“America’s sugar producers are among the most efficient in the world, but it’s hard to compete with the treasuries of foreign countries,” said Ardis Hammock, a farmer from Clewiston, FL. “It will be impossible to establish a true free market in sugar unless these unfair subsidies are eliminated, and Zero-for-Zero recognizes that basic fact.”

Ardis grows sugarcane with her husband and son on a farm that’s been in her family for three generations. She’s proud of what her family has accomplished over the past 100 years but is worried about the future as prices remain low and foreign governments fuel overproduction. 

“Our no-cost sugar policy gives us a fighting chance to survive until reform to the world market materializes,” she said. “Congressman Yoho’s plan is common-sense legislation that says we’re not going to let foreign cheaters run hardworking Americans out of business.”

Unilaterally eliminating or weakening the current U.S. sugar policy without concessions from foreign nations would collapse the domestic sugar market, endangering 142,000 industry jobs and putting consumers at risk of foreign dependence.  

The American Sugar Alliance urged Congress to move quickly on Yoho’s effort.

Original co-sponsors of the Zero-for-Zero policy include Reps. Garret Graves (R-LA), Alcee Hastings (D-FL), Clay Higgins (R-LA), Walter Jones (R-NC), Paul Mitchell (R-MI) and Alex Mooney (R-WV).