America’s sugarbeet and sugarcane farmers are asking Congress to act urgently to strengthen the farm safety net. It’s important to listen as farmers share their stories. It’s just as important to recognize that farm policies affect more than just the farm — there are millions of Americans who depend on the economic engine of American agriculture.

Farm Policy Facts recently shared a piece on 10 reasons to pass a Farm Bill, noting that more than 22 million full and part-time jobs in 2022 were related to the agricultural and food sectors. Farmers and agriculture help drive our economy forward.

When it comes to agriculture, sugar is a small commodity with an outsized impact. Sugarbeets and sugarcane are grown on a little more than 2 million acres but supply three-quarters of the domestic demand for sugar while supporting more than 151,000 jobs and driving more than $23 billion in annual economic impact coast-to-coast.

The crops grown by our farmers support good American manufacturing jobs as skilled workers create a made-in-America food product for your family. Many are union jobs in areas where job opportunities can be limited.

If we want to keep good American jobs in America, Congress must strengthen sugar policy.  

On behalf of our workers, farmers, and communities, we are calling on Congress to pass a bipartisan Farm Bill that supports American food manufacturing and preserves American jobs.

All of us who benefit from the bountiful and efficient food and agriculture system in America should also demand it.

The American Sugar Alliance congratulates Brooke Rollins on being nominated as Secretary of Agriculture by President-elect Donald Trump. 

“America’s sugarbeet and sugarcane farmers and factory workers applaud President-elect Donald Trump’s commitment to ensuring that agriculture remains a vital cornerstone of our nation’s economy and food security. Agriculture is facing historic challenges, and we look forward to working with Secretary-designate Rollins to support our farmers, protect rural communities, and preserve the most abundant and diverse food supply in the world,” said Jack Pettus, Chairman of the American Sugar Alliance.

From coast to coast, American sugarbeet and sugarcane farmers and factory workers support more than 151,000 jobs and drive $23.3 billion in annual economic activity.

This National Farmer’s Day, we will be celebrating America’s sugarbeet and sugarcane farmers and everything they do to make our lives sweeter.

Our 11,000 sugarbeet and sugarcane family farmers support over 151,000 American jobs coast-to-coast. In many of these communities, sugar is the main engine of economic growth. Rooted in farmer-, employee-, and family-owned cooperatives, our industry contributes more than $23 billion annually to the U.S. economy.

Behind these numbers are multi-generational legacies – farmers who have worked the land for decades, passing down their passion and their pride in growing the food we eat, upholding the highest environmental standards, and ensuring a reliable supply of made-in-America sugar.

Meet some of America’s sugar producers: 

Sugarcane farmers Charles and Wanda Guidry 
Erath, LA

“Sugar is very important in our community. It’s created a whole lot of jobs.”

Sugarbeet farmer Lynn Johnson 
Ada, MN 

“It’s not just the farmers [who benefit from U.S. sugar policy], but the people that support the industry, all the people that come and help us, the truck drivers, the people that sell equipment, that service equipment, the seed people, our suppliers.”

Sugarcane farmer Keith Wedgworth  
Belle Glade, FL

“Agriculture is the best industry out there. It’s one of the last that is family-oriented.”

Sugarbeet farmer Laura Rutherford  
Grafton, ND

“I want to be able to pass [the farm] on to [my kids]. I think that’s what keeps all farmers going through the good years, the bad years, and the really bad years.”

The grit and dedication of our farmers inspire us every day. That’s why we are fighting for a bipartisan Farm Bill that will help them continue these family farming legacies and #KeepItSweet in America.

Stay connected. Follow the American Sugar Alliance on X, Facebook, and Instagram for updates and to learn more about the hard work of America’s sugarbeet and sugarcane farmers.

By Dr. Rob Johansson, Director of Economics and Policy Analysis

The volatility of the cocoa market has led to some truly spooky headlines over the past year, including cautionary tales of candy shortages. It’s inevitable that these headlines will rise from the dead again this Halloween and opponents of U.S. sugar policy may choose to take this opportunity to take a stab at sugar producers.

But if your Halloween basket is light on chocolate this year, it’s cocoa that’s the culprit – not sugar.

Chocolate, a key ingredient found in many Halloween favorites, is made from cocoa beans.  And nearly 60% of the world’s cocoa beans come from just two countries: Ivory Coast and Ghana. Both countries have had several years of terrible harvests, leading to a global deficit of cocoa and prices 200% higher than just three years ago.

The prices for some other key candy ingredients, including dairy, oil, and sugar, by comparison have remained relatively unchanged over that same period.

Thankfully, U.S. sugar policy has provided Halloween candy manufacturers with stable sugar prices and a reliable domestic source for an essential ingredient. Not to mention, the cost of the sugar in your favorite Halloween treat is likely just a penny or two, and research from the University of Tennessee has shown that there is little-to-no correlation between changes in sugar prices and the prices that grocery shoppers ultimately pay for sweet treats.

Frighteningly, very little of the cost of candy goes back to sugarbeet and sugarcane farmers.

Our farmers and factory workers take immense risks to plant, raise, harvest, store, and process the crops that sweeten our celebrations. Let’s make sure we don’t falsely point to them as the boogeyman this Halloween season.

Ryan Munn, a third-generation sugarbeet farmer from Washington State, recently advocated for the passage of a strong Farm Bill in The Seattle Times. Growing sugarbeets has been a vital part of his family’s crop rotation for more than 30 years.

“The Farm Bill is essential to our livelihood, as it provides a stable safety net, allowing us to grow the agricultural commodities that form the foundation of our food supply. Today, R. Munn Farms grows sugar beets, along with onions, shallots, carrots, turf grass seed, wheat, peas and beans. All these crops are touched by various provisions in the Farm Bill.” 

Hardworking sugarbeet and sugarcane farmers like Ryan depend on a robust safety net and strong sugar policy in the Farm Bill. They’re asking that Congress work together to pass a bipartisan and highly effective five-year Farm Bill as soon as possible.

“Rising production costs and weather challenges have made it harder for family farmers to survive, and without a strong Farm Bill, our farm and our ability to contribute to our communities would be in peril. We want Congress to pass a bill that better reflects these current economic realities.” 

Sugar production creates revenue and jobs that sustain local communities across the country. In Washington State, sugarbeet production supports more than 240 jobs, contributes $28 million annually to the state’s economy, and generates over 88,000 tons of sugar. But this all depends on passing a strengthened sugar policy provision in the Farm Bill to help ensure our family farmers, like Ryan, can continue to provide an affordable and reliable supply of made-in-America sugar.

“The time is now. Hardworking farm families like mine need your support. We know that Americans prefer American-made sugar, and we want to be here to supply it. Congress must pass a strong Farm Bill to protect farmers and ranchers across the country and ensure we can continue growing sugar crops and produce this essential ingredient.” 

Read Ryan’s full op-ed in The Seattle Times to better understand the importance of the Farm Bill to sugar producers in Washington and around the country.

Seattle, WA – In a bipartisan show of support for U.S. sugar policy, Rep. Lori Chavez-DeRemer (R-OR-05), Rep. Rick Larsen (D-WA-02), and Rep. Dan Newhouse (R-WA-04) all provided remarks at the U.S. sugar industry’s 39th annual conference, the International Sweetener Symposium, in Seattle, WA, this week.

Each of the members noted the importance of agriculture – particularly sugarbeets – to the region. Sugar production has a significant impact on the economy in the Pacific Northwest. In Washington State, sugarbeets drive $28 million in annual economic impact and in Oregon, sugarbeets drive $128 million in annual economic impact.

Farmers across commodities are facing rising production costs and greater weather challenges that have made it harder for family farms to survive.

“As one of the few farmers in Congress, I understand the unique challenges our producers face and have been working hard to ensure the long-term success of America’s agricultural industry,” Rep. Newhouse, a member of the House Appropriations Committee, said in his recorded remarks at the International Sweetener Symposium. “I know that passing a comprehensive Farm Bill is of the utmost importance to our farm economy.”

Rep. Newhouse expressed support for the strengthened policy provisions in the Farm Bill passed out of the House Agriculture Committee in a bipartisan vote.

Rep. Chavez-DeRemer, a member of the House Agriculture Committee who voted for the bipartisan Farm, Food, and National Security Act of 2024 when it passed the committee, also spoke about the need for a stronger farm safety net.

“I know that a strong farm safety net is essential to the growth and success of family farms. Federal policies must ensure that our farmers and ranchers have the support they need,” said Rep. Chavez-DeRemer. “Together, we can ensure the Farm Bill remains a pillar of support for our producers, helping them to thrive for generations to come.”

“If we don’t have food security, we don’t have national security. We are the breadbasket of the world and people are counting on us,” she said.

American agriculture is critical to maintaining a robust food supply. Rep. Larsen, Ranking Member of the House Transportation and Infrastructure Committee, addressed the need to make investments in our domestic supply chains..

“Nationwide, the sugar industry supports over 150,000 jobs and contributes over $23 billion annually to the national economy. Many of these jobs and investments are in rural communities, and I certainly am committed to strengthening these communities through the investments that we make through infrastructure, our roads and bridges and highways and ports, to ensure that goods and people can move efficiently throughout the country and of course around the world,” said Rep. Larsen.

America’s sugarbeet and sugarcane farmers and workers are grateful to Reps. Chavez-DeRemer, Larsen, and Newhouse for their continued support of American agriculture and a strong U.S. sugar policy.

Seattle, WA – The bipartisan, bicameral leaders of the congressional Agriculture Committees reiterated their support for U.S. sugar policy during the 39th International Sweetener Symposium this week, hosted by the American Sugar Alliance.

In recorded remarks, House Chairman GT Thompson (R-PA-15), Ranking Member David Scott (D-GA-13), Senate Chairwoman Debbie Stabenow (D-MI), and Ranking Member John Boozman (R-AR) each emphasized the importance of maintaining a strong domestic sugar industry and remarked on the vital role sugar plays in feeding America.

“Sugar is so important. We can do without a lot of things, but the one thing we cannot do without is sugar,” said Ranking Member Scott.

As the primary architects of the next Farm Bill, these leaders have invested significant time listening to the concerns of America’s sugarbeet and sugarcane farmers and workers.

“Across the country, the message I heard loud and clear is that farmers are struggling, and the safety net is inadequate. Between low commodity prices and high input costs, the margin squeeze is getting more serious as each day goes by,” Chairman Thompson explained.

Both the House and Senate Committees have released Farm Bill proposals to better support the ability of farm families and workers to grow, harvest, process, and deliver sugar to American families and food manufacturers.

“[The bipartisan Farm, Food, and National Security Act of 2024] will give renewed strength to the farm safety net, just as producers need it most,” Thompson continued. “On sugar specifically, not only did we deliver on critical policy improvements for domestic growers and processors, we were able to do so in a way that enhances the sugar supply chain which garnered the support of sugar users, making this the first ever Farm Bill supported by both sides of the industry.”

Chairwoman Stabenow spoke to the vast contributions of the U.S. sugar industry, which supports more than 151,000 jobs and more than $28 billion in annual economic activity, and the need to move a bipartisan Farm Bill.

“Sugar may be sweet, but your role in the American economy, and in communities across the country, is even sweeter,” Chairwoman Stabenow said. “I am hard at work to enact a bipartisan Farm Bill by the end of the year. My Farm Bill proposal, the Rural Prosperity and Food Security Act, helps sugar growers by improving loan rates and making other important changes to the sugar program.”

America’s sugarbeet and sugarcane farm families need a bipartisan, bicameral, and highly effective Farm Bill.

Ranking Member Boozman highlighted the need for additional farm support as well as underscored the importance of a strong domestic supply chain for sugar.

“Farmers are facing challenges ranging from historic inflation, record trade deficit, rising interest rates, devastating natural disasters, and global disruptions,” Ranking Member Boozman said. “Senate Republicans have released a framework that addresses those concerns… Our framework strengthens and protects sugar policy for growers, and we facilitate the movement of more domestic sugar into the marketplace for those who use it.”

The American Sugar Alliance will continue working alongside the House and Senate Agriculture Committees to encourage Congress deliver greater certainty and a strengthened safety net through a five-year Farm Bill as soon as possible.

On behalf of America’s sugarbeet and sugarcane farm families and the factory workers from across the country represented by the American Sugar Alliance, Neil Rockstad, a Minnesota sugarbeet grower, fourth-generation farmer and President of the American Sugarbeet Growers Association, and Patrick Frischhertz, a Louisiana sugarcane grower and eighth-generation farmer, issued the following joint statement in response to the Farm Bill framework released this week from Senate Agriculture Committee Ranking Member John Boozman, R-AR: 

“Our farm families need a bipartisan, bicameral, and highly effective Farm Bill. Senator Boozman’s proposal represents another positive step towards its enactment. We thank Ranking Member Boozman for his diligent efforts to understand the needs and concerns of the American sugar industry and to respond with improvements to sugar policy similar to those championed by Senate Chairwoman Stabenow and House Chairman Thompson. We stand ready to work with the Senate and House Agriculture Committees to encourage Congress to make this shared goal a reality this year. This effort is vital to delivering greater certainty and a strengthened safety net for America’s farm and ranch families.” 

A new U.S. government report on India’s egregious trade practices, co-authored with the government of Australia, once again demonstrates the importance of a robust U.S. sugar policy.

As Congress is preparing to debate a five-year Farm Bill that includes a strengthened safety net for American sugar crop farmers – at no cost to U.S. taxpayers – U.S. and Australian officials are providing evidence to the World Trade Organization (WTO) of the billions of dollars in subsidies India has lavished on its producers.

India subsidized its sugar industry by a whopping $17.1 billion in 2022. Those subsides are “vastly in excess of levels permitted under WTO rules,” according to the report, and continued even after a dispute panel ruled in 2021 that India had violated its WTO commitments on sugar.

India continues to be the poster child of a world sugar market that is, at best, dysfunctional, and at worst, prone to volatile market swings due to manipulation. In fact, even after that dispute panel finding that India was subsidizing its industry by $13.4 billion in 2018, the subsidy levels continued to climb to $15.9 billion in 2019, $14.6 billion in 2020, $16.5 billion in 2021 and $17.1 billion in 2022. And those amounts do not even include the supports that India has been providing its sugarcane ethanol sector, which also serve to distort the world market.

Ultimately, billions of dollars in foreign sugar subsidies from huge sugar producing countries like India and Brazil encourage the over production of sugar. That surplus sugar gets dumped on global markets, driving world sugar prices down below the costs of producing that sugar.

Unlike other countries, U.S. sugar crop 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. India, on the other hand, is openly flaunting its WTO commitments to fair trade and repeatedly violating the rules. That is why Congress does not allow heavily subsidized foreign sugar to be dumped on our market.

The U.S. sugar industry has repeatedly called for an end to all global sugar subsidies, a concept known as zero-for-zero, and a modernized WTO that brings transparency and accountability to the world sugar market.

Until a true free market can be developed, weakening U.S. sugar policy would sacrifice our efficient American farmers to predatory practices, threaten 151,000 jobs, and undermine our national food security. All to benefit countries like India that continue to cheat the system with a bitter scheme of subsidies.

Support U.S. sugar producers by supporting a strengthened U.S. sugar policy.

With the next Farm Bill on the horizon, two sugarbeet farmers recently took to the pages of their homestate papers to praise U.S. sugar policy for keeping our food supply secure and supporting their family farms. U.S. sugar policy must be preserved and strengthened in the next Farm Bill.

Colorado farmer Paul Schlagel grows sugarbeets in Boulder County for Western Sugar Cooperative. His family farm has been in operation for more than 100 years. Paul wrote in his op-ed for the Colorado Springs Gazette that the economic pressures and significant cost increases facing farmers requires a stronger farm safety net.

“It is more important than ever that we have the strongest safety net possible to sustain current [sugar] production levels and maintain our national food security,” Paul wrote. “Without a strong safety net, family farms like mine would be driven out of business and countless jobs would be eliminated.”

In Montana, farmer Shane Strecker, who also grows sugarbeets for Western Sugar Cooperative, pushed back against farm policy critics in the Billings Gazette. Shane pointed to the recent closure of Sidney Sugars in Montana and the resulting economic and job losses as a warning sign of what could happen if U.S. sugar policy were weakened.

“Letting farms like mine fail by eliminating a policy that costs taxpayers nothing would mean fewer American jobs and more food grown in [sugar] subsidizing countries like Brazil and India. That’s not a risk I’m willing to take, and I bet most Americans aren’t either,” Shane wrote.

Sugar crop farmers like Paul and Shane are critical to maintaining a strong and resilient domestic supply of an essential food ingredient. We are grateful for Congress’ continued bipartisan and bicameral support of the no-cost sugar policy that allows these farmers to survive.

A long-time veteran of the U.S. Department of Agriculture (USDA), Casey Bean will join the American Sugar Alliance (ASA) as the organization’s trade consultant on May 1. Bean will work with ASA to analyze the complex global trade issues that impact U.S. sugar farmers and shape America’s no-cost sugar policy.

With more than thirty years of experience working with the USDA’s Foreign Agricultural Service (FAS), Bean’s work at FAS spans multiple regions across the globe including the countries of Bolivia, China, Colombia, Ecuador, Japan, Pakistan, Peru, and Venezuela. He participated in trade negotiations and enforced the rules critical to maintaining a level playing field for U.S. agriculture as a member of the Senior Foreign Service, both while overseas and as a senior director at FAS headquarters.

Most recently, Bean served as Agricultural Counselor with the rank of Agricultural Minister Counselor in the Senior Foreign Service at the U.S. Embassy in Bogota, Colombia. In this capacity, he liaised with USDA and USTR staff, U.S. lawmakers, and other leaders to promote U.S. priorities and strengthen domestic food security in the 7th largest market for U.S. food and beverages.

“We are excited to welcome Casey to the team at this critical juncture for America’s sugar producers and farm policy,” said Cassie Bladow, Chairwoman of ASA. “His expertise, contacts, and on-the-ground trade experience will help our industry navigate new challenges on the world stage while moving the needle forward on our goal of a less distorted and more predictable global sugar market.”

The world sugar market is widely considered to be the most distorted and volatile commodity market in the world, fraught with trade rule violations and billions in foreign subsidies, threatening the sustainability of America’s sugar industry and the livelihoods of more than 151,000 American workers.

Bean will continue the excellent work of seasoned trade negotiator Brian Grunenfelder, who has served the industry since 2019.

“We are immensely grateful for Brian’s expert guidance over the past five years and unwavering commitment to fair trade,” Bladow said. “On behalf of America’s sugarbeet and sugarcane family farmers and factory workers, we are grateful for his dedication to ensuring that U.S. sugar producers can continue to contribute to America’s stable supply chain. We wish him the best in his well-deserved retirement!”

FOR IMMEDIATE RELEASE  

May 2, 2023

Washington, D.C. – Today, Neil Rockstad, a sugarbeet farmer from Ada, Minnesota, testified before the Senate Agriculture Subcommittee on Commodities, Risk Management, and Trade.

On behalf of the American Sugar Alliance, he thanked Chairwoman Tina Smith (D-MN) and Ranking Member Cindy Hyde-Smith (R-MS) for listening to the needs of American producers as they craft the next Farm Bill.

Rockstad highlighted the strengths of the domestic sugar industry and reiterated the concern shared by all Title I commodities that the safety net needs to be updated to reflect the realities and conditions farmers are facing. “The safety net must be increased in this Farm Bill for long term stability to provide secure supplies for American consumers.”

As Senator Smith noted, farmers are “the center of our economy, our food system, and our national security.” This sentiment was echoed by other members of the committee and the farmers testifying. In addition, Rockstad reminded lawmakers that “Sugar was readily available on grocery store shelves throughout the pandemic. That success is attributable to U.S. sugar policy and the heroic efforts of our farmers and factory workers.”

“Many of the jobs and businesses generated and supported by the U.S. sugar industry are in rural areas and urban areas where good blue-collar jobs have become harder and harder to find. As an industry, we are proud to provide high-paying good jobs in our communities,” said Rockstad. “In my home state of Minnesota, the sugarbeet industry provides almost 21,000 jobs and has a $3.06 billion economic impact.” Sugarbeet farmers are proud to be a part of the $16 billion in value for Minnesota, which Senator Smith spoke about in her opening remarks.

As the committee considers how to write a Farm Bill that is tailored to meet the needs of American farmers, ranchers, and producers in every part of the country, Rockstad urged lawmakers to support the 11,000 American sugarbeet and sugarcane family farmers and the employees in our mills, processors, and refineries.

It bears repeating that “effective sugar policy, which maintains a strong domestic industry, is essential to the food security of our nation.”

Read Neil Rockstad’s full testimony.

FOR IMMEDIATE RELEASE  

April 26, 2023 

Washington, D.C. – Today, Patrick Frischhertz, a sugarcane grower from Plaquemine, Louisiana testified before the House Subcommittee on General Farm Commodities, Risk Management, and Credit. He thanked Chairman Austin Scott (R-GA-8) and Ranking Member Shontel Brown (D-OH-11) for listening to the needs of American producers as they craft the next Farm Bill.  

On behalf of the American Sugar Alliance, Frischhertz called on lawmakers to ensure “Title I sugar policy…provide[s] an adequate economic safety net for American sugarcane and sugarbeet farmers.” Without sugar policy, “we would effectively outsource our sugar supply to heavily-subsidized and unreliable foreign sugar suppliers whose environmental and labor standards simply do not measure up to our own. That would be the opposite of strengthening supply chains and contrary to providing a safety net to American producers. Under that scenario, farmers, consumers, and taxpayers would all lose.” 

He reminded the subcommittee of the vital role sugar producers play in the nation’s food supply by ensuring American consumers have “a safe, high-quality, reliable, sustainably produced and affordable supply of an essential ingredient.” He also underscored the effectiveness of U.S. sugar policy that serves Americans at “no cost to the U.S. Treasury.”  

Frischhertz spoke on the challenges sugar producers face from high input costs, tight margins, and crop and weather disruptions. He urged the members to examine “how the farm safety net could be updated in the next Farm Bill for all Title I commodities to better match actual operating costs for producers,” and gave sugar producers’ support for the subcommittee’s interest in developing additional risk management programs to complement crop insurance. “We are certainly receptive to new efforts to provide standing disaster coverage in ways that do not undermine crop insurance and possibly even encourage greater participation and coverage levels.” 

As this subcommittee considers how to write a Farm Bill that meets the needs of our producers and the American people, Frischhertz urged lawmakers to support the 11,000 American sugarcane and sugarbeet family farmers and the employees in our mills, processors, and refineries. 

It bears repeating that “effective sugar policy, which maintains a strong domestic industry, is essential to the food security of our nation.” 

Read Patrick Frischhertz’s full testimony.

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.  

Dr. Rob Johansson, Director of Economics and Policy Analysis at the American Sugar Alliance (ASA), testified before the House Committee on Agriculture today on the importance of supporting America’s sugar farmers, producers, and sugar supply chain by maintaining a strong U.S. sugar policy in the 2023 Farm Bill.

In his written testimony, Johansson outlined the strategic importance of American sugar production. The U.S. sugar industry generates more than 140,000 jobs and $20 billion in annual economic activity. In short, the U.S. sugar industry serves as the backbone of local economies in both rural and urban regions while keeping America supplied with an essential ingredient.

Over the past two years, Johansson pointed out, problems with global supply chains have made clear the danger of relying on uncertain foreign suppliers. “This is why an effective sugar policy, which maintains a strong domestic industry, is essential to the food security of our nation,” Johansson said.

Johansson thanked lawmakers for their bipartisan support of U.S. sugar policy, which, because it is based on loans repaid with interest, is designed to cost taxpayers nothing. This structure ensures U.S. sugar policy serves American farmers, consumers, food manufacturers, and taxpayers alike.

However, much like other agricultural sectors, sugar producers are feeling the pressure of rising production costs and inflation while loan rates for raw cane sugar and refined beet sugar have not kept pace. Johansson urged lawmakers to examine how the farm safety net could be updated to better reflect actual costs.

“Operating margins are being squeezed each year, due to rising labor, fuel, seed, fertilizer, equipment and interest rate costs that hit our producers in the field and at the factories they own. Having a loan rate that is closer to actual costs of production would provide a more effective safety net to our producers,” Johansson said.

Other farm safety net programs, such as crop insurance, are important for America’s sugar farmers, and could be improved upon to better meet the unique risk management needs of sugar crops.

Johansson also explained how farm and trade policies, and the strong enforcement measures put into place to uphold these policies, prevent our market from being flooded by heavily subsidized foreign sugar imported from the volatile world market. This sugar is normally sold well below the cost of production and is not produced under the same high standards as U.S.-made sugar.

“Our industry proudly meets some of the highest labor and environmental standards in the world, unlike many other large sugar producing countries. Moreover, using best practices and continuous improvement, our sector has made huge strides in sustainability,” Johansson said.

Johansson concluded his testimony by inviting lawmakers to visit sugar farms and processors throughout the country to see first-hand how U.S. sugar policy and the Farm Bill support America’s sugar farming families and workers, and the communities where they live and work.

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.).

Russia’s sugar industry has made an unparalleled and unexpected transformation from one of the world’s biggest sugar importers, relying on foreign sugar for up to 80 percent of its needs as recently as 2003, to a net exporter of sugar. Little has been documented about Russia’s rapid rise until today, when the American Sugar Alliance (ASA) released a report, “Russia’s Sugar Industry: Transformation with Government Intervention,” authored by sugar experts from the region.

The report, authored by Patrick H. Chatenay and Sergey Gudoshnikov, not only details how Russia engineered this sudden shift in sugar production, but why the government sought to regenerate its domestic sugar industry. Chatenay, based in the United Kingdom, is a renowned expert on the global sugar market and Gudoshnikov, a Russia native, was Senior Economist for the International Sugar Organization in London for 31 years.

Since its inception, the Russian Federation has placed a high priority on domestic food security. Reducing Russia’s dependence on foreign sugar took on increased urgency as long-time supplier Cuba’s sugar market collapsed. Russia was forced to rely on the uncertain, unreliable and volatile global sugar market, which is widely considered to be the most distorted commodity market in the world as rampant global subsidization has led to overproduction and predatory pricing.

That pricing drove Russia to control and limit subsidized imports and utilize direct and indirect subsidies to bolster its own inefficient sugar industry. The report released today by ASA found that over the past decade, the Russian government utilized a number of tactics to regenerate domestic production, including:

• Imposing variable import duties on raw sugar and a fixed import duty on white sugar
• Subsidizing operating costs, including subsidies for fertilizers and herbicides
• Subsidizing interest rates for investments in sugarbeet processing and storage

“In total between 2010 and 2017, the government injected an estimated $772 million of public funds into the industry to support a doubling of sugarbeet-processing capacity and beet sugar output,” the report states. The authors estimate the average annual value to the Russian sugarbeet industry of government import protections and direct subsidies during this period at $392 million per year.

By all accounts, Russia’s plan worked. Russia produced a surplus of sugar in excess of 1.6 million tons in 2020, prompting the government to take steps to support and facilitate sugar exports in order to offload its surplus onto the world market.

“This report sheds much needed light on the measures Russia has taken to spur domestic sugar production,” said Dr. Robert Johansson, ASA’s Associate Director of Economics and Policy Analysis and former Chief Economist at the U.S. Department of Agriculture. “Russia’s newfound role as a potential sugar exporter requires close monitoring, as its decisions moving forward will now carry additional ramifications for the over-subsidized global dump market for sugar. We take seriously the authors closing observation on the certainty of continued Russian involvement with the sugarbeet industry.”

“The world sugar market is riddled with direct and indirect subsidies,” added ASA’s Director of Economics and Policy Analysis, Jack Roney, “and little is known about the distorting government interventions in many countries’ sugar sectors. This study on Russia follows on the authoritative studies the ASA has commissioned in recent years, and shared with the U.S. Department of Agriculture and U.S. Trade Representative, on the sugar industries of Brazil, India, Thailand, and the European Union.” The Russia study, and past country studies, are available at the ASA website.

ASA shared this report in a letter to U.S. trade officials and asked for continued diligence in monitoring Russian intervention moving 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.”

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.”