Column authored by Dr. Robert Johansson, Associate Director of Economics and Policy Analysis at the American Sugar Alliance.

The vernal equinox, aka spring equinox, came and went Sunday, March 20, marking the end of winter and the beginning of spring.

As all good aggies know, that means the economists at the Food and Agricultural Policy Institute (FAPRI) at the University of Missouri have just published their new 10-year baseline for agricultural production and programs.

That baseline is adjusted by University of Missouri economists to reflect more recent 2022 prices and economic conditions compared to the earlier U.S. Department of Agriculture (USDA) baseline published in part in November and in full in February. Most of the data and assumptions used for these projections came from the January time frame, however. That means that a lot of the impacts one might expect from the conflict between Russia and Ukraine and disruptions with Black Sea deliveries will not be reflected in this baseline.

For example, while fertilizer prices are assumed higher for 2022/23 in this baseline compared to the 2021/22 crop year, the extreme rise in fertilizer prices since the conflict began and the likelihood that Russia and Belarus will have continuing difficulties with exporting goods are not captured in this report. As another example, this baseline does not include the projected increases in interest rates announced by the Federal Reserve Open Market Committee in March.

From a sugar perspective, the equinox also marks the tail end of the sugarcane harvest (with some acres left to harvest yet in Florida and Texas) and the beginning of sugarbeet planting.

Taking stock:

• we expect record domestic sugar production at 9.4 million tons in 2021/22, despite challenges ranging from historic drought in the Northern Great Plains to hurricanes battering the Gulf Coast shores and a freeze in Florida this January; and
• the projections for next year are for a continued increase in production to more than 9.7 million tons in 2022/23.

With record production for American sugar farmers this year and next, there will be more than an adequate supply of sugar to fulfill our nation’s needs. Projected imports for this year and next are expected to continue to decline from the recent high of 4.2 million tons in 2019/20.

Looking forward, FAPRI expects overall sugar demand to grow by nearly 1 million tons over the next 10 years, as the number of people in America grows over time. Per capita consumption of sugar has been relatively flat over the recent 10-year period, while consumption of high fructose corn syrup has been falling.

Sugar demand growth is met with expected growth in domestic production, but U.S. sugar policy also gives 41 countries, most of them developing nations, preferential access to our market to ensure that consumers always stay stocked with this essential ingredient. In fact, the U.S. is the third largest sugar importer in the world. Overall stocks-to-use remain near 14.5%, indicating ample stocks of sugar are projected to be available on average over the projection period.

While FAPRI does not explicitly discuss government program costs for sugar, USDA in their 10-year baseline continues to project a sugar program cost of $0 over the next 10 years. And in the FAPRI baseline with rising production in the U.S., sugar prices for raw cane sugar and refined beet sugar are expected on average to remain above the loan rates.

However, with any good economic forecast there are both positives and negatives. An area worth keeping an eye on is rising costs of production. Both FAPRI and USDA expect agricultural costs of production to continue to increase over the next 10 years. FAPRI has input costs rising by 24% and USDA has input costs rising by 8% over the baseline period, which again does not include any developments from February or March. FAPRI projects the farm debt-to-asset ratio creeping up to 15.7% by 2031 (which would be the highest since 1989 if realized), reflecting rising costs of production and stagnant prices for outputs.

In the face of such anticipated challenges, it is critical that Congress continue to back a strong farm safety net including a no-cost sugar policy in order to allow continued investments in farm productivity and refining efficiencies.

In early 2020, America faced the beginning of a global pandemic. Historically robust supply chains were tested, forcing ships to wait in line at port and leaving grocery store shelves sparsely stocked. However, our industry kept America reliably supplied with sugar, an essential food ingredient.

This was largely due to the strong farm and trade policies that have supported America’s sugar growers and processors and allowed our industry to invest in a robust domestic industry and an extensive storage and delivery network.

Today, there are more than 90 strategically located sugar factories, mills, refineries, and storage facilities in the U.S. that provide for customer needs and just-in-time delivery across the nation, making the sugar industry critical to our national food security.

Congressional support for this vital American industry is through legislation known as the Farm Bill, which includes sugar policy, designed to cost taxpayers $0 and to keep sugar affordable and reliably available. Sugarbeet and sugarcane growers are meeting virtually with congressional offices this week to talk about the importance of this policy as they ramp up to reauthorize the Farm Bill in 2023.

Here’s how it works: The seasonal nature of sugarbeet and sugarcane crops requires sugar producers to store massive amounts of sugar until the market wants it. The sugar extracted from these crops is stored at the expense of sugar producers. The Farm Bill authorizes the U. S. Department of Agriculture (USDA) to offer loans to America’s sugar producers so farmers can pay their bills while their sugar is being stored for their customers. Once the customers take delivery and pay producers for the sugar, the storage loans can be repaid to USDA with interest.  

“The sugar provision in the Farm Bill doesn’t cost the taxpayer anything, but it’s an essential safety net for us,” said Ervin Schlemmer, a sugarbeet farmer in Montana.

At the same time, our existing trade commitments provide 41 countries with guaranteed preferential market access to the U.S., making America the 3rd largest sugar importer in the world. Combined with domestic sugar production, this ensures that American consumers and food manufacturers always have sugar available.

If current sugar and trade policies were weakened or eliminated, our market would be flooded with imported sugar that is heavily subsidized and less sustainably produced, driving American farmers and workers out of business. And as a result, our country would be dependent on unreliable and uncertain foreign suppliers.

“I need a strong Farm Bill that stops foreign governments from having a yard sale of their heavily subsidized sugar here in the United States and I need a government to say we want our food produced in America,” said Ardis Hammock, a sugarcane grower in Florida.

We’re proud to help feed America, and glad that Congress has continued to support the sugar farmers and workers who keep America sweet.

U.S. sugar producers keep America reliably stocked with affordable sugar, thanks to the stability provided by U.S. sugar policy, said Dr. Rob Johansson, Director of Economics and Policy Analysis at the American Sugar Alliance (ASA), in remarks at today’s Agricultural Outlook Forum, hosted by the U.S. Department of Agriculture (USDA).

Johansson, who served at USDA for 21 years, including most recently a six-year post as USDA’s Chief Economist, spoke to the pressures facing farmers and emphasized that sugar producers are not immune to these challenges.

Rising prices for fertilizer, feed, labor, fuel, pesticides, and transportation have put the squeeze on farmers, tightening their already thin margins. Fertilizer prices, in particular, have risen significantly this past year, with some individual fertilizer components posting triple digit increases. Increased costs of production are one reason why the UDSA has forecasted a 4.5% drop in net farm income for 2022, when compared to last year.  And when accounting for inflation, net farm income is forecast to fall by nearly 8% compared to last year.

“With inflation affecting most sectors of the economy this year as well as continued declines in government assistance for pandemic relief, we can expect farmers to be concerned about their bottom-line heading into the 2022/23 crop year,” Johansson said before giving his presentation.

While input costs continue to rise, sugar prices have generally fallen in real terms when accounting for inflation, despite being an essential ingredient in many foods.

“Refined sugar prices have fallen by 35 percent in real terms over the past 40 years,” Johansson said.

U.S. sugar policy has allowed America’s sugar producers to invest in on-farm and factory improvements to become even more efficient and more sustainable. Per acre yields for sugarbeet and sugarcane have both sharply increased over the past 20 years, with the industry overall producing 16 percent more sugar on 11 percent less land.

Still, America’s sugar producers and our American-made supply of sugar are under threat from both growing economic pressures and efforts to undermine America’s successful sugar policy.

Johansson underscored the importance of maintaining a strong sugar policy as Congress begins deliberating the 2023 Farm Bill. U.S. sugar policy protects family farms and good American jobs, and rural and urban communities, while supporting our national food security by providing a stable supply chain, all at no cost to taxpayers.

“Another benefit of U.S. sugar policy is the development of resilient supply chains for America’s sugar supplies,” Johansson said. “We have seen throughout the pandemic how our sugar companies were able to quickly redirect sugar supplies to where they were needed. Maintaining our current program that allows our farmers to harvest, refine, and store sugar until it is needed is a key component of that resilient supply chain.”

Every year, America’s farmers do something incredible: they nurture a small seed or sprout until harvest in order to provide all of us with an affordable supply of food.

For sugarbeet growers, a sugarbeet seed is not only the starting point for the production of sugar, but is also an important part of sugar’s sustainability story.

Idaho sugarbeet grower Liz Bingham knows the immense power that a tiny sugarbeet seed holds.

Originally from Wisconsin, Liz now farms alongside her husband Cody on their family farm in south central Idaho. As a farmer, and a mom of four, she is passionate about creating a more sustainable future.

The introduction of bioengineered sugarbeets has helped the Binghams produce a sustainable, safe, affordable and reliable crop by giving them a tool to reduce weeds while using less herbicides.

“[The sugarbeet] is no longer competing for sunlight from weeds, and also space and water, so the beet is growing in just about as ideal of conditions as we can get for the soil that we have,” Liz said.

For the Bingham family – and sugarbeet growers across the country – bioengineered sugarbeet seeds are an incredible advancement. And indispensable to their farming operation.

“If you were to now go to a farmer that has sugarbeets on their farm and say ‘Look, we are going to now give you only conventional beets and go back to the old system,’ it would be the equivalent of taking a smartphone out of our hands and handing us a rotary phone,” Liz explained.

The development of sugarbeet seeds takes an immense amount of technology, hard work and time. For beet seed companies, developing a new, viable variety of sugarbeet seed can take up to a decade.

Seed companies take desired traits from existing seeds to improve the sugarbeet seeds for today’s environment. The goal is better plant performance, higher yields of sugar and increased efficiency.

“Humans have always done this. We’ve taken what we’ve found available to us and we’ve adopted it to use to further our survivability and increase the productivity of the crops that we use,” said Mark Schmidt, Vice President of Sales at KWS Seeds. “That’s enabled us to thrive on our planet.”

For seed companies, researchers and farmers, science holds the answers to a more sustainable future.

From a tiny seed to the sugar on your table, we are thankful for the sugar farmers, workers and researchers who make producing #SugarSustainably possible.

In south Louisiana, the sugarcane grows high and the heritage of the sugarcane industry runs deep.

For nearly 130 years, generations of Louisiana sugar workers have refined raw sugar at the Louisiana Sugar Refining (LSR) refinery in Gramercy, Louisiana.

The American Sugar Alliance recently spoke to Larry Faucheux, CEO of LSR, about the contributions that the LSR refinery have made to a strong Louisiana and how LSR is moving its sustainability practices forward. This is the latest video in our ongoing series to document the many ways that sugar farmers and workers across the country produce #SugarSustainably.

The story of the sugar being refined at the LSR refinery starts on the farm. Approximately 800 Louisiana sugarcane farmers grow the sugarcane crops that are then turned into raw sugar at eight mills. These mills send their raw sugar to the LSR refinery, which produces the crystalized white sugar that most people are familiar with.

A lot of sugar, in fact. The LSR refinery produces six million pounds of sugar a day.

It’s truly a local business. All of the sugarcane farmers that supply the LSR refinery grow their crops within a 110-mile radius of the refinery. Most of the 400 refinery workers live within 10 miles of the refinery – and for many, their family histories are intertwined with the refinery’s history.

“The attraction for me to this refinery has always been the heritage of it,” Faucheux says. “Many people who work here have third, fourth and fifth generation heritage.”

Faucheux is the third generation in his family to work in the refinery.

Knowing the role that the refinery plays in supporting local families and Louisiana’s economy has driven LSR to continue its investment in sustainable practices.

“LSR’s view of sustainability is one of three different pillars that need to be followed. They include an economic pillar, an environmental pillar and a social pillar,” Faucheux explained.

LSR has worked with third-party organizations to certify its sustainability practices. It partnered with the global organization Sedex to ensure the refinery was fulfilling sustainable requirements. At the farm level, LSR uses a program called the SAI Platform to measure sustainability in the field.

“LSR truly believes that in order for us to be sustainable there should be a good supply chain in place that takes it from the plant itself in the field all the way to the customer and therefore we have worked very hard in both directions. We sit between the customer and that plant that is in the field,” Faucheux said.

With the efforts that the LSR refinery has made to further improve its environmental practices, strengthen its economic impact and support the strong social fabric of Louisiana’s communities, we have no doubt that the refinery will still be producing sugar sustainably in another 130 years.

Newly confirmed U.S. Trade Representative Katherine Tai recently signaled strong support for America’s sugar producers and affirmed her commitment to America’s no-cost sugar policy, sending cheers throughout sugar country.

In written comments submitted to the Senate Finance Committee following her confirmation hearing, Tai responded to inquiries from several senators asking how she would handle trade issues pertaining to sugar, considering the heavily subsidized nature of the global sugar market.

“Any reforms I pursue regarding the global sugar market will be consistent with maintaining the current no-cost U.S. sugar policy,” Tai stated in response to a question from Senator John Barrasso (R-WY) asking how she would approach reforming the distorted global market.

In response to a follow-up question from Senator Barrasso about how to utilize the World Trade Organization (WTO) to secure a multilateral approach to sugar reform, Tai stated that updates to the WTO rules would be needed to effectively target foreign subsidization.

“WTO rules need to be updated to reflect long-standing agricultural issues that have not been rectified under the WTO’s current construction. I will work with like-minded partners to ensure that any new rules are consistent with U.S. domestic sugar goals,” Tai wrote.

Senator Bill Cassidy (R-LA) asked Tai about Brazil’s recent attempts to trade increased access to its market for certain commodities in exchange for allowing Brazil to send more subsidized sugar to our shores. Tai firmly stated that under her watch, she will not tolerate other nations trying to pit American agriculture against itself.

“In my testimony, I emphasized that no U.S. stakeholder should be prioritized over another during trade negotiations,” Tai said. “If confirmed, I commit to ensuring that no new agricultural market access comes at the expense of other agricultural stakeholders.”

These comments are bad news for mega-subsidizer Brazil, which benefits from direct and indirect subsidies valued at an estimated $2.5 billion per year to prop up its sugar industry – and who has long hoped to flood our market with its subsidized sugar. In fact, widespread production- and trade-distorting foreign subsidies, including from top offenders Brazil, India, and Thailand, have led to rampant overproduction and sugar prices below the costs of production.

Tai also stated that “U.S. trade policy must benefit domestic agricultural producers and provide consumers and food manufacturers with a safe and secure domestic food supply. I will make this a central pillar of any agricultural trade policy I pursue.”

Tai’s commitment to supporting domestic agricultural producers and assurance that sugar access won’t be unilaterally traded away in future trade negotiations is welcome news for America’s sugar farmers and workers.

That’s because not only do America’s sugar producers keep America supplied with an essential ingredient, they also support 142,000 jobs in 22 states and generate $20 billion in annual economic activity. Without a strong U.S. sugar policy, the dysfunctional and heavily subsidized world sugar market would jeopardize the livelihoods of American sugar producers and the American consumers and small businesses who depend on them.

America’s sugar farmers and workers once again congratulate Ambassador Tai on her confirmation as the U.S. Trade Representative. We look forward to partnering with Tai to advance our shared goals of worker-centered trade policies that acknowledge the importance of good-paying American jobs and the need for fair trade rules reflective of global trading realities.

America’s sugar policy is designed to cost taxpayers nothing. Zip. Zilch. Nada.

That seems like a pretty sweet deal. But how exactly does U.S. sugar policy work? It’s simple:

1. The U.S. is the 5th largest producer and 3rd largest importer in the world.
2. Existing trade deals provide preferential access to 41 countries, with the U.S. importing as much as 1/3 of consumption needs in recent years.
3. The Farm Bill authorizes USDA to offer loans to domestic producers to provide for orderly marketing.
4. Because loans are repaid with interest and there are no subsidy checks, the policy operates at $0 cost to taxpayers.
5. If too much sugar is produced, U.S. producers store the excess at their own expense.
6. If more sugar is needed, additional sugar can be quickly imported.

That policy gives sugar producers stability and predictability, allowing farmers and workers to keep America supplied with a reliable supply of high-quality sugar.

Our efficient industry, backed by a strong and flexible sugar policy, helped us respond to the challenges of 2020. To ensure store shelves stayed stocked during the first six months of the pandemic, sugar producers quickly shifted 90,000 tons of sugar from commercial outlets to consumer packaging. That means sugar producers redirected the equivalent of 45,000,000 four-pound sugar bags to store shelves in order to keep your pantry stocked.

Americans find sugar to be affordable, too, with a recent survey finding that 63 percent of Americans believe sugar is not expensive at all. A pound of sugar today costs about $0.65 – that’s down about 20 percent over the past 40 years when accounting for inflation.

Importantly, without a strong sugar policy, American sugar farmers and workers would be facing competition from a massively distorted global sugar market wrecked by foreign subsidies. While the countries below are among the worst offenders, market-disrupting policies are commonplace in most countries around the world.

On the global market, sugar prices barely cover half the average cost of producing sugar – a result of over-production and trade-distorting subsidies. Mega-subsidizers like Brazil, Thailand, and India flood and distort the world market with their surplus sugar using government subsidies and policies – in some cases in apparent violation of international trade obligations.

That’s why Congress has repeatedly rebuffed attempts to dismantle America’s no-cost sugar policy, most recently by an overwhelming 141-vote margin in the House.

All this at no cost to taxpayers? Now that’s smart policy.

Deep in Louisiana sugarcane country, there lies a giant hamburger. Or rather, a food plot in the shape of a hamburger. Not too far away there are similar gardens in the shape of a hot dog, a box of french fries and a taco.

This is the Fast Food Farm in St. James Parish, a non-profit educational farm started by Denny Hymel more than 20 years ago after realizing that children were increasingly disconnected from the farms where their food comes from.

Each of the shapes above contains the individual crops used to make these common fast food items, while a nearby chicken coop provides eggs. Hands-on activities connect the farm’s school-aged visitors to each plot so they can learn first-hand how food is grown and processed.

“I just felt a great need to create something I can teach them and bring about that awareness of how important agriculture is to everyone,” Denny says.

The Fast Food Farm plays an important role in the sugar industry’s sustainability story. It’s critical that future generations understand not only how agriculture works, but also the importance of protecting the air, land and water that nurtures those crops.

“I’m teaching them how to plant, how to grow their own food. That’s sustainability,” Denny says. “They are growing. They are taking it back to their homes and they are telling their parents I want to grow this in my garden.”

Not only does Denny work with school children to help them learn more about agriculture, but any extra produce or eggs are donated to a local charity to help feed neighbors in need.

In total, approximately 95,000 people have visited the Fast Food Farm over the years. And when the pandemic put a hold on educational field trips, Denny worked quickly to provide children with hundreds of drive through “ag-tivities” in order to provide a safe and socially distant learning opportunity.

View our entire video series showcasing the sugar industry’s decades-long commitment to building a brighter future by producing sugar, sustainably.

It’s safe to say that we’re all looking forward to leaving 2020 in the rearview mirror.

Some of the world’s largest sugar subsidizers decided to close out this year the best way they know how – by creating even more uncertainty in an already tumultuous global sugar market.

Troubles in India are contributing to wild swings in global sugar prices, demonstrating once again the importance of U.S. sugar policy that preserves America’s reliable and affordable supply of this essential ingredient.

India’s sugar exports have slid to a halt while the industry waits for the government to announce its export incentive policy. Last year, the country’s scheme covered a multitude of expenses, including marketing expenditures and transportation costs. This totaled an estimated whopping $875 million in subsidies, according to a recent USDA GAIN report. That’s only a portion of the $1.7 billion in direct and indirect government subsidies provided to Indian sugar interests that has put the nation in hot water at the World Trade Organization (WTO).

Other crops generally do not have to navigate such a wild rollercoaster of prices or blatant violations of trade rules.

Sugarcane and sugarbeet farmers don’t need to plan next year’s crop while trying to bet on market fluctuations that rise and fall based on the whims and pocketbooks of foreign subsidizers. Thankfully, America’s sugar farmers and workers have the stability of U.S. sugar policy.

Until foreign sugar subsidies and their devastating impact on our farmers and workers are a thing of the past, Congress must continue to protect America’s no-cost sugar policy.

Sugar is a unique commodity. The unique nature of America’s sugar industry, the robust sugar supply chain and the flexibility of America’s no-cost sugar policy all proved to be a strategic assets when the COVID-19 pandemic introduced new challenges earlier this year.

Sugar farmers and workers pivoted quickly in order to keep America supplied with an essential ingredient. Grocery stores remained stocked and food manufacturing lines kept humming, knowing that they had reliable access to an affordable supply of sugar.

We created a brand-new video as part of our Sugar Shorts series to share what sets sugar apart.

11,000 family farmers from the Red River Valley to the Rio Grande Valley grow sugar crops. And they grow two completely different types of sugar crops – sugarbeets and sugarcane – which are then both refined into the same sugar.

Sugar workers make and package more than 60 different varieties of sugar, which come in a range of sizes from a teaspoon serving to railcars loaded with sugar. America’s sugar companies store this sugar all across the country in strategically located state-of-the-art facilities until food manufacturers and other customers need it.

Not to mention, the majority of those companies are farmer-owned cooperatives, which helps vertically integrate the supply chain from farm to grocery store shelf.

America’s sugar policy is unique, too. The world sugar market is grossly distorted by subsidies. But America’s no-cost sugar policy is built on loans repaid with interest – not subsidy checks – which ensures a secure supply of sugar at no cost to taxpayers.

Now that’s a sweet deal.

 

Interested in learning more about U.S. sugar policy? Check out the other videos in the Sugar Shorts series.

 

Get the Facts

The U.S. Department of Agriculture estimates that sugar policy will cost $0 over the life of the current Farm Bill.

More facts like these available here and on sugaralliance.org.

On the Tube

It’s been a tough year for sugar farmers and factory workers in the Rio Grande Valley, as first the global health crisis and then the landfall of Hurricane Hanna created new challenges. The Rio Grande Valley Sugar Growers are a critical part of these South Texas communities and we have faith that working together, they will continue to support each other during these unprecedented times.

Recovery will not come easily, but the Texan sugar industry has a long history of supporting its neighbors and investing in sustainable communities.

Earlier this year, the American Sugar Alliance traveled to south Texas to get a first-hand look at how the Rio Grande Valley Sugar Growers give back as a key part of their commitment to sustainability.

For decades, sugar farmers and workers in Texas have been sustainably growing sugar cane and producing raw sugar in this beautiful place. But their commitment to sustainability does not end at the farm gate. They also help ensure that the rural communities in the surrounding area remain strong – a mission that has become even more critical as the COVID-19 pandemic has gripped the nation.

Ofelia Gonzales works for Rio Grande Valley Sugar Growers processing data in the mill. She’s also a member of the local Rotary and sees the industry’s impact firsthand in the many ways they support the Rotary’s community efforts.

“I’ve always helped in the community at one end or the other,” she said. “The sugar mill is one of our main sponsors for the Rotary.”

The mill is also an important partner with the Ronald McDonald House in Harlingen, Texas.

“It’s all fundraising and donations from the community” said Denise Cantu, the program manager. “They help us with sponsoring our events and they also give us an annual donation at the end of the year. They help with helping the families. And that’s a great feeling that they are here and able to help us. Because it’s very hard to ask for the donations and to be able to run this place. It’s very expensive.”

Of course, sustainability also means a commitment to protecting the resources that allow our farmers to grow sugarcane. And when it’s time for harvest, the farmers in the Rio Grande Valley go big.

“We run 24 hours a day,” said Sean Brashear, CEO of Rio Grande Valley Sugar Growers. “That means we harvest 24 hours a day, we deliver 24 hours a day.”

With all that cane comes fiber from leaves and stalks that is removed and piled high. It’s called bagasse and it doesn’t go to waste. This green energy source powers both the massive mill as well as surrounding homes and businesses.

“If everything works well, we produce excess power that we go ahead and distribute on the grid,” he said. “From there, our nearest neighboring town is Santa Rosa, and we go ahead and feed it through Santa Rosa and for the most part we have the potential for supplying 100 percent of the power for Santa Rosa.”

Stay tuned for more videos of the incredible ways that the Texas sugarcane industry is producing sugar, sustainably.

Over the past several months, the COVID-19 pandemic has altered our daily routines, but it has not dimmed the hope and giving spirit that shines through America’s sugar industry.

The majority of America’s sugar operations are located in small towns and rural areas, fostering a tightknit relationship between sugar farmers and workers and the communities where they live and work. From day one of the COVID-19 pandemic, the sugar industry has led efforts to feed and protect its neighbors in need.

When Amalgamated Sugar Company found itself with a surplus of masks above and beyond what was required to protect its workers, it donated 2,000 surplus cloth masks to the Boise Rescue Mission Ministries to help protect vulnerable men, woman and children from the spread of COVID-19.

“Amalgamated Sugar’s generous gift of 2,000 face masks provides a timely resource that is so appreciated,” said Reverend Bill Roscoe, president of Boise Rescue Mission Ministries. “I am amazed at their kindness and generosity to the Rescue Mission as we continue to serve people through very difficult circumstances.”

We are so proud of the sweet ways America’s sugar industry has lent a helping hand in support of our nation’s recovery. We’ve profiled many of them already, but are thankful to be able to keep sharing more examples of the humble generosity of our sugar producers.

American Crystal Sugar Company prides itself on the local ties its employees have fostered within the local communities. So, it wanted to find a way to share its appreciation for its hardworking employees as well as support local restaurants that have been affected by COVID-19.

American Crystal awarded each of its nearly 2,000 employees with $75 in gift cards for restaurants throughout the Red River Valley as well as near Sidney, Montana.

Sugar farmers have always been quick to share their blessings by supporting food donation efforts. However, the pandemic has created even greater food insecurity in many of our rural communities. In response, farmers and sugar companies have stepped up efforts to help, including Florida Crystals.

Florida Crystals and its farmers also donated sugar, rice and fresh produce to local hospitals during National Nurses Week and National Hospital Week in gratitude for the dedicated medical professionals on the front lines of this pandemic.

But sugar is more than just a key ingredient for many of the foods we know and love. As distilleries make hand sanitizer to support relief and recovery efforts, sugar companies have donated tens of thousands of pounds of a critical component: sugar.

Florida Crystals joined these ranks with its donation of 42,500 pounds of cane sugar to a local Florida rum distillery to produce and donate hand and surface sanitizer to first responders, hospitals, nursing homes and community members.

This season might look vastly different for our farmers, our factories and our families. The challenges created by the pandemic may be new, but our dedication to preserving vibrant rural communities, farm families and small businesses has long been a tenet of the industry’s commitment to sustainability and will continue to drive our efforts to aid recovery.

We’re all in this together and hope will persevere.

With their friends and neighbors facing job loss and uncertainty due to COVID-19, U.S. Sugar provided 1,000 crates of green beans as well as fresh Florida orange juice to churches, healthcare providers, and food banks across South Florida. U.S. Sugar isn’t alone in its efforts to keep the community fed by donating truckloads of food.

Across America, sugar growers and producers are stepping up to help sustain local families as economic hardship has increased demands for assistance.

The sugar industry is providing donations to food pantries, ensuring children have access to food programs with the absence of school-based meals and helping feed the elderly who depend on community-based food programs.

The iconic Domino Sugar refinery in Baltimore, Maryland, delivered sugar to Catholic Charities of Baltimore, which was distributed to four food pantries in the city and will be used at Our Daily Bread Employment Center to provide individuals with a daily hot meal.

The Domino Sugar refineries in Chalmette, Louisiana and Yonkers, New York each donated granulated sugar to food banks to be distributed to families in the area.

C&H Sugar in California donated sugar to the Food Bank of Contra Costa and Solano, which is working to provide a consistent supply of food to those it serves while also meeting a new and growing need for nourishing meals in the community.

These company efforts supplement the generous donations provided by individual sugar farmers across the country.

As the harm inflicted by COVID-19 on their neighbors grew, South Florida cane farmer Paul Orsenigo and business partner David Basore of Grower’s Management Inc. increased their monthly donation of sweet corn, lettuce and fresh cabbage to a Feed the Hungry food bank in Palm Beach County. Their donations help the food bank feed more than 3,000-5,000 families every day.

Orsenigo and Basore have also donated vegetables to the Place of Hope in Palm Beach Gardens, which supports more than 300 foster children and at-risk youth.

“The need for food has increased dramatically in recent weeks,” Orsenigo said. “We are thankful that we have the opportunity to support those in need by providing healthy and nutritious Glades-grown vegetables to local charities.”

At the American Sugar Alliance, we are grateful to have the opportunity to support the humble and hardworking farmers and workers who make up the American sugar industry. Thank you for the essential work that you continue to perform, and the love and compassion you have displayed for your friends and neighbors during this exceptionally difficult time.

Over the past several months, the world has changed dramatically as we confront an unseen enemy. Despite physical distance and stay-at-home orders, Americans have found new community as together we face uncertainty about what tomorrow may bring.

Even as this pandemic unfolds, we must continue to eat, which means farmers continue to farm. In fact, the federal government declared that farmers and food manufacturers are an essential workforce and a critical part of the national response to COVID-19. Despite the many challenges they currently face, rural America and the nation’s farmers continue to work tirelessly to provide us all with a safe and affordable supply of food.

For the sugarbeet growers who farm in Southern California’s Imperial Valley, harvest must go on.

Southern California sugar growers are unique in that their harvest starts on April 1 and stretches through the summer. They are an essential part of the food supply chain for a significant portion of the Southwest/Pacific markets, as the Imperial Valley growers supply the sugar needs of nearly 7.5 million people who call California home. For perspective, that’s enough sugar to feed the four largest cities in California – Los Angeles, San Diego, San Jose and San Francisco – and then some.

“Rural America is not exempt from the anxiety we all feel about the threat that coronavirus poses. However, one thing I am not worried about is America’s food production. I see first-hand every day that agriculture is still moving forward,” sugarbeet grower Suzanne Rutherford said.

“We are thankful for a beautiful sugarbeet crop that, during the next few months’ harvest will again be a driver in our local economy. California sugar will eventually be delivered to our bakery and confectionery customers, and in turn will move as an essential ingredient along the food supply chain to your grocery shelves. Particularly in times like these, I’m proud to be a small but very important part of this supply chain.”

Suzanne and her husband Curt are both multi-generation farmers, whose grandparents arrived in the Imperial Valley at the beginning of the 20^th century.

“When we planted sugarbeets here in the Imperial Valley desert last fall, the coronavirus was unheard of. Now, in completely different times, we are ready to begin harvest on April 1, just as we always have,” Curt Rutherford said.

“With the health crisis facing the nation, I feel that the agricultural community will come through and provide a safe, bountiful supply of food and fiber for the nation,” Curt added. “We have millions of Americans depending on our farms and factory to meet their needs.”

Adapting to new challenges is a defining characteristic of rural America and this year’s harvest will be unlike any harvest before as producers take additional measures to protect the health and safety of their growers and workers.

“I’m extremely grateful for a crop to harvest, especially when you consider the recent disaster that happened in other beet growing regions of the United States,” said Von Medearis, President of the California Beet Growers Association. “I feel it’s an honor to be one of the few who can do this.”

Grower Jason Taylor echoed that sentiment, saying, “I feel blessed to do what I do. I really enjoy being able to produce an important part of the American food chain.”

We pray that our beet growers in Southern California have a safe harvest and we are thinking of the farmers all across this country working hard so that we may have the food necessary to nourish our families.

To all of our beet and cane growers, farmers and ranchers, and the essential workers who help bring our food products to market: Thank you for #StillFarming.

America’s no-cost sugar policy supports well-paying jobs and provides economic opportunities for our communities. In fact, the sugar industry generates 142,000 jobs across the country and adds $20 billion to the U.S. economy.

Sugar companies pay fair wages and offer good benefits, providing opportunities in communities where jobs can otherwise be limited. Our industry takes pride in fostering a skilled workforce. Whether it’s partnering with community colleges to develop educational opportunities or providing tuition reimbursement, additional training and technical classes, the sugar industry is continually encouraging growth and career advancement.

 

The skilled employees who help produce high-quality American sugar are an integral part of our industry. The American Sugar Alliance recently traveled to Minnesota to hear from sugar company employees on-the-ground about the steps our industry is taking to create a sustainable workforce.

Kelly Moorhart, a safety specialist at American Crystal Sugar Company, made incredible advancements in her career thanks to the company’s tuition reimbursement program. “They invested so much in me, and so early on in my career… I really do appreciate the fact that American Crystal Sugar invests so much in their employees,” said Moorhart.

American Crystal Sugar Company also partners with Minnesota State Community and Technical College to develop employee maintenance skills. This success of this partnership has been recognized by the American Association of Community Colleges as a finalist for their 2020 Outstanding College/Corporate Partnership Award of Excellence.

Elsewhere in the factory, Technical Training Lead, John Wagar, helps lead the Process Technician program. This training program provides a clear career path and the necessary on-the-job training to ensure long-term employee success.

All American Crystal Sugar Company employees are members of the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union. In fact, 100 percent of beet sugar processors employ union labor, as do most cane refineries.

Outside of the factory, sugar companies and employees are active within our neighborhoods and engage with local leaders to help foster more sustainable communities.

Thanks in part to U.S. Sugar, thousands of students in Florida started school in August 2019 with brand-new backpacks filled with the supplies they would need for a successful year. Brannan Thomas, U.S. Sugar’s Community Relations Manager and a native of Belle Glade, helped lead this project and has spearheaded countless other initiatives to support youth programs, schools and other charities in the area.

“The support of the sugar industries in South Central Florida create sustainable communities, and I am proud to be a part of that,” Thomas said.

Wylie Wisnewski, a teacher at Red River Area Learning Center, did not have the resources he needed to create an engaging project-based learning environment. Through the American Crystal Sugar Company Community Roots program, Wisnewski and his classroom received two STEM Grants to ensure students had the resources they needed.

The American sugar industry does more than just produce affordable homegrown sugar. We invest countless volunteer hours and significant financial resources into our employees, schools and communities.

People lie at the heart of our industry, and we are proud to help empower our workforce and create a more inclusive and sustainable society.

This Valentine’s Day, Americans will spend an estimated $2.4 billion buying candy treats for their sweet.

American sugar farmers and workers are proud to share the love by producing an affordable supply of homegrown sugar. But it’s heartbreaking that America’s sugar farmers and workers will receive just a small share of those sales.

The American Sugar Alliance is releasing two new social media graphics to highlight the low cost of sugar in popular Valentine’s Day items.

A heart-shaped box of chocolates costs $15.99, but sugar producers receive only $0.09. And they see just $0.06 of the $1.25 price tag for a box of conversation hearts.

Despite their big profits, Big Candy wants to break up with our no-cost sugar policy. It’s clear that Big Candy has nothing to complain about – sugar farmers and workers are receiving just pennies for their hard work.

We hope that Congress will send a valentine to America’s 142,000 sugar farmers and workers by pledging to protect our strong no-cost sugar policy.

 

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Duane Grant never set out to be an agricultural pioneer. He just wanted to continue the family farm and make his dad proud.

Grant grew up on his father Douglas’s farm in Southern Idaho and contributed from an early age, eventually joining the operation full-time after high school.

Since he joined the operation in 1980, he has become the CEO of Grant 4-D Farms and guided a more than 50-fold increase in the farm’s size and production. Grant 4-D Farms grows sugarbeets, potatoes, seed potatoes, wheat, malt barley, corn, and hay on its farms in Southern Idaho and Eastern Oregon.

“Hard work and technology-fueled the growth,” said Grant, who is also the chairman of Amalgamated Sugar Company.

And no technology has been as revolutionary as sugarbeet seeds that are bioengineered to resist weed-killing herbicides – a process commonly called GMO. Grant credits the invention with reducing the industry’s environmental footprint as well as saving countless farms from ruin.

“My family has been involved in agriculture since migrating from Scotland more than 100 years ago,” Grant said. “We are now seeing the next generation working on our family farms, and it is an incredible feeling to know that thanks to advancements like biotechnology our operations can continue to contribute to the local economy and the nation’s food supply.”

Like many farms in his area, sugarbeets are at the heart of Grant’s operation. But the crop was becoming harder and harder for families like his to produce.

“Beets are a nightmare to grow because of weeds,” he explained. “Sugar farmers can go bankrupt if they can’t successfully control weeds. That used to mean a rigorous regimen that required lots of money, lots of chemicals, and lots of people working long hours.”

So, in the early 2000s, Grant dedicated himself to bringing the same GMO technology to sugarbeets that was benefitting corn and soybean farmers.

Numerous field trials testing genetically-modified beets were conducted on Grant’s farm. He was one of the first farmers who agreed to take the leap of faith and commercially plant a GMO sugarbeet crop in 2007. And, he was deeply involved with a U.S. Department of Agriculture advisory committee charged with charting a course for the future of biotechnology.

By 2008, other sugarbeet farmers were eager to enjoy GMO’s benefits, and nearly 60 percent of U.S. beet production had shifted. Just one year later, bioengineered seeds accounted for 95 percent of the nation’s sugarbeet crop.

Since the introduction of GMO sugarbeet seed, Grant said per acre productivity has accelerated to the point where growers associated with Amalgamated Sugar get twice as much production from less than half the amount of inputs they did 15 years ago.

This means less spraying of herbicides; less tilling and stripping of the land, which leads to erosion; and less need for costly farm equipment that burns fossil fuels.

“When I was a kid, the valley where we grow used to turn brown from wind-blown soil erosion caused by traditional sugarbeet tillage practices.” Grant said. “That doesn’t happen anymore…we stay green and it’s thanks to the genetically modified seed.”

In fact, scientific studies show that bioengineered sugarbeets have reduced ecotoxicity and environmental risk by 92 percent and 98 percent respectively. And this technology has enabled farmers to utilize better farming practices that have cut soil-derived carbon emissions by 80%.

And with sugar prices low and stagnating, and with production costs climbing, the development of GMO sugarbeet seed also helped alleviate the economic squeeze of weed control that was crippling Grant and his neighbors.

In short, more sugarbeets are being produced on less land, and it’s being done in a more economical and environmental way.

“Best of all, when the natural sugar contained in beets is extracted during the refining process, the resulting table sugar is identical to sugar from non-GMO beet or cane sugar,” Grant said, “which is important to some consumers.”

Grant is astonished when he sits back and thinks about how far his farm and the industry has come in just the past decade.

“It’s fitting to describe the journey as a ‘tough row to hoe,’” he said of the farming metaphor used to describe a challenging task. “But it’s been well worth it. We’ve saved farms, helped families, and improved the environment by making sugar more sustainable.”

Needless to say, his father would be proud.

The sugarcane fields of south Florida are home to more than just high-quality sugar.

The tall stalks provide a habitat to countless creatures that call the region home. Birds, reptiles, and small mammals all live in the farm fields, sharing their habitat with humans who grow cane.

It’s been like this since sugarcane was commercially cultivated in the region nearly a century ago.

And farmers in the area, by nature, love the environment and the animals it sustains. The soil, sun and rain in Florida bring to life the crops they raise. Protecting that environment is just as important to sugarcane farmers as the crop that flourishes in Florida.

But some of the critters that live among the stalks can cause problems for sustainable and efficient cane harvesting. Rats and mice chew on the stalks, often damaging a significant percentage of the crop.

That means farmers had to spend time and energy working to protect their crops from the pests. In the past, they’ve used the same methods you might use at home to rid your property of rodents. But those methods were expensive and, in some cases, inefficient. Traditional applications used to combat rodents required multiple treatments and would dissolve and become ineffective with rain.

Enter the barn owl – and a widespread local sustainable farming practice that got its start from a humble high school science fair project back in 1994.

As that project noted, barn owls native to the Florida sugar area love to nest in tight spaces, like the rafters and eaves of barns. They also eat mice – by the thousands. And the fact that a pair of owls were shown to eat as many as 5,000 rodents in a year was music to the sugarcane farmers’ ears.

Dr. Richard Raid, of the University of Florida, took that science fair project and expanded it to what has become a great method for controlling rodents in cane fields. His work even won him a special achievement award from the World Owl Hall of Fame in 2019.

Since Dr. Raid expanded upon the local science project, thousands of local students have built barn owl boxes and installed them in sugarcane fields.

The first-generation wooden boxes have been replaced with plastic boxes because bees also found them to be a good home. The bees disturbed the owls and presented a danger for workers. The bees don’t seem to like the plastic boxes, but the owls do.

Florida Crystals Corporation and the independent growers in the area are big believers in the project, using barn owl boxes in most of their fields.

“We basically upgraded from wooden birdhouses to sturdier condos,” says Marianne Martinez, the company’s vice president of corporate communications.

Moramay Naranjo, principal scientist, is over the project at Florida Crystals.

The most recent owl census showed of the 126 boxes, 92 of those currently contain nesting owls. Naranjo is measuring the ability of the owls to control rodents and has plans to expand.

Naranjo says using the owls is a win-win for farmers and the environment.

“I’m so excited,” she says. “I am helping those families of owls. They have a cute and unique face. I feel so proud because we are helping everything – the ecosystem, the environment and at the same time we are protecting our farms.”

And that is what sustainability is all about.

Stop us if you’ve heard this one before.

India has a massive sugar problem. It will have 17-million-metric-tons more sugar than what it consumes this year, according to a recent USDA report. USDA notes the 17 million tons is more than double India’s minimum annual stock requirements. And India’s sugar mills are finding it difficult to sell this surplus sugar at a profit.

Seemingly undeterred by three separate challenges at the World Trade Organization regarding its use of an array of market-distorting subsidies, India is considering utilizing more export subsidies in an effort to reduce sugar stocks and settle outstanding payments to cane farmers.

Bloomberg reports:

India plans to bolster efforts to boost sugar exports and help beleaguered mills in defiance of criticism from Brazil and Australia that its existing subsidies are keeping global prices low and hurting their farmers. The government may reimburse exporters some ocean freight and marketing expenses, according to people familiar with the proposal, who asked not to be identified as it isn’t public.

These new payments are an unwelcome addition to India’s already long list of trade-distorting practices – including the use of cane subsidies and subsidized and preferential loans – that have encouraged overproduction and contributed to depressed prices on the global sugar market. They have created a problem in their domestic market and by dumping sugar below the cost of production on the world market created problems that threaten sugar producers world-wide.

As one opinion writer recently emphasized in the Indian newspaper, The Hindu Business Line, “this situation is entirely [India’s] own making:”

In a bid to please the sugarcane farmers, an important vote bank in States such as Maharashtra and Uttar Pradesh (UP), successive governments have announced [a] high cane price. Over the years this has resulted in a huge mismatch between the prices of sugarcane and other crops. Today, sugarcane fetches 60 per cent higher returns than any other competing crop. Assured of both price and market, farmers prefer sugarcane even if they periodically face significant delay in receiving payment.

Sugar surplus is bad for everyone. It depresses the prices apart from affecting the cash flow of the mills. They struggle to pay the farmers and as arrears mount the government is forced to step in and help the mills clear the dues through relief packages.

The bitter truth is that doubling down on export subsidies will only continue to drive distortions in the global sugar market. Prohibiting direct and indirect export subsidies must be the first step to fixing the most distorted and volatile commodity market in the world.

That’s why the U.S. sugar industry support’s Congressman Ted Yoho’s Zero-for-Zero sugar policy, which eliminates all global subsidies and allows America’s efficient sugar producers to compete on a level playing field. Only with a Zero-for-Zero sugar policy will a true free market have an opportunity to thrive.

India’s latest export subsidy scheme blatantly flouts international trade rules, and it’s been receiving lots of attention lately.

Australia, Brazil, and Guatemala have all recently initiated formal proceedings against India under the World Trade Organization’s (WTO) dispute settlement mechanism. Leaders from Alvean, the world’s biggest sugar trader, singled out Indian subsidies for suppressing global prices. And earlier this month, Texas Tech University released a global sugar subsidy handbook that dedicated considerable space to India’s trade-distorting policies.

“India, a long-time sugar importer, is now making an unprecedented move to supplant Brazil as the world’s dominant supplier,” the Texas Tech study’s author noted in a recent column. “Through export subsidies that appear to be WTO-illegal, soft loans, tariffs, and other new policies, India increased production and more than made up for Brazil’s [production] decline.”

Now, the U.S. Department of Agriculture has provided updated insights into India’s extensive array of support programs.  Its recently-released annual report about India’s sugar industry outlined several of the country’s subsidies. Among them:

• Financial aid to sugar mills – $566 million
• Subsidies to boost exports – $191 million (with approval to grow to $768 million)
• Costs to run a buffer stock/export program – $171 million
• Subsidies to cover interest payments on loans – $400 million

And that doesn’t even count the $1.5 billion in preferential loans that the report mentioned, which are designed to help India’s industry cope with low prices amid surpluses. Nor does it include India’s ethanol program, which the USDA report says may benefit from proposed aid to improve production capacity.

India also guarantees high prices for sugarcane to boost farm revenue, making it more profitable than other crops and helping to fuel oversupplies.

With such an intricate web of subsidies one would think India’s industry would be flush right now. Wrong. Even with a generous subsidy system, the inefficient sugar industry is struggling. As the USDA observed:

Currently, sugar sold in international markets is selling at more than 33 percent discount to Indian sugar (wholesale), a gap which widened by 9 percent in the last seven months, driven in part by Indian rupee appreciation of 6 percent (relative to USD). Subsidies and supports have not made Indian sugar competitive on international markets.

And don’t expect the price situation to improve in the short term. The USDA report predicts that surplus stocks will reach a record 17 million metric tons in 2019 – that’s about 6 million tons more than the United States consumes in a year.

Clearly, India’s system is broken. It’s time for reform. It’s time for all countries to eliminate the subsidies wrecking the global sugar market. It’s time for a Zero-for-Zero sugar policy that prioritizes business smarts over subsidies.

Farm Policy Facts debuted a new podcast called Groundwork yesterday, and two sugar farmers were the first guests on the show.

John Snyder, of Wyoming, and Travis Medine, of Louisiana, discussed the importance of sugar farming in rural communities with Groundwork host Tom Sell.

The show runs about 18 minutes. You can find it on farmpolicyfacts.org as well as the iTunes store. Groundwork is a monthly series focusing on range of policy issues that are important to American farmers.

The first episode tackled the importance of the Farm Bill and the impact sugar has on the nation’s economy.

Snyder, on the show, noted that sugarbeets and sugarcane support 142,000 jobs in 22 states. He said the global sugar market is heavily subsidized, which necessitates America’s no-cost sugar policy in the Farm Bill. And that policy helps keep people employed in communities where jobs are often scarce.

“It trickles down to the people who work for us on the farms, it trickles down the [businesses] here in town, to the people who do our repairs,” he said. “It’s a huge part of our economy.”

Snyder was one of dozens of sugar farmers recently in Washington, DC, to thank lawmakers for delivering such a strong sugar policy in the 2018 Farm Bill. Sugarcane farmer Travis Medine was also part of that trip to the nation’s capital.

During the podcast, where he discussed the trip, Medine also explained the unusually long return-on-investment in sugarcane. Most people, he said, don’t know that cane is harvested for four years on an initial planting. It’s such an extended timeline that business planning is difficult without the stability provided by the sugar policy in the Farm Bill.

“A lot of people don’t understand that’s a very, very long-term investment,” he said. “It is labor intensive and costly, we have to know that safety net is there.”

Listen to Groundwork for more from Snyder and Medine. Follow the podcast on twitter at #Groundwork.

Today might be April Fool’s Day, but it’s no joke that federal sugar policy once again cost taxpayers $0 last year.

Even better, the USDA predicts sugar policy will continue to operate at zero cost for the next 10 years.

That means that federal sugar policy cost taxpayers absolutely nothing in 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2014, 2015, 2016, 2017 and 2018. This is by design, as our sugar policy is based on loans that must be repaid with interest. Not subsidy checks handed out to sugar farmers and producers, as some critics might mislead people into believing.

Only once in the past 15 years has sugar policy incurred a government cost. Mexico violated our trade law in 2013 and dumped subsidized sugar, requiring the USDA to take action to keep the domestic sugar market from collapsing.

But don’t just take our word on the positive benefits of our federal sugar policy.

Congress reaffirmed the importance of a strong sugar policy with the passage of a bipartisan Farm Bill in December 2018. And sugar farmers recently visited Capitol Hill to thank lawmakers and continue to share the importance of sugar policy to both urban and rural communities across the country.

Not to mention, federal sugar policy ensures that manufacturers and consumers alike have access to an affordable supply of high-quality American sugar. U.S. food manufacturers pay 25% less for sugar than companies in other developed countries, and U.S. grocery shoppers pay 22% less than the rest of the developed world.

That means keeping a strong sugar policy in place benefits taxpayers, consumers and our sugar producers. All for $0.

Don’t let anyone fool you – U.S. sugar policy remains a no-cost success story.

Fifty-seven sugar factories have closed since the 1980s due to low prices, contributing to the loss of 100,000 sugar jobs. In fact, the Labor Department’s Bureau of Labor Statistics stopped tracking “sugar manufacturing” as a job category in 2008 due to the industry’s shrinking size.

Thankfully, there are still 142,000 hardworking men and women employed by sugar across 22 states. And the salaries and benefits associated with those sugar jobs pump more than $4.2 billion a year into both rural and urban communities where job opportunities might otherwise be limited, and generate nearly $20 billion in total economic activity each year.

Protecting sugar jobs – many of which are union jobs – and maintaining a strong U.S. sugar policy is the primary message being delivered by dozens of sugarbeet and sugarcane farmers this week on Capitol Hill.

Similar messages were shared by sugar workers across the country as part of theFaces of Sugar Policy campaign:

“It would be hard for me to imagine what this community would be like without sugar. The number of jobs that people would no longer have.”
– Tracy Bentley, Scottsbluff, Nebraska

 “These kinds of jobs are very important to Baltimore and middle-income families. I recommend keeping it going because you want to keep the middle class, the middle class.”
– John Godleski, Baltimore, Maryland

“People stay here. They retire here… I think it means a lot for the community and the company itself, too. It’s a really nice partnership between the company and the community.”
– Walter Aucaylle, Yonkers, New York

The American sugar industry is working hard to maintain high-paying jobs in the United States. We are thankful that Congress recognized the economic importance of our homegrown sugar industry and overwhelmingly supported passage of a strong sugar policy in the 2018 Farm Bill.

The bottom line: supporting our successful sugar policy means protecting good American jobs and the communities that rely on them. That’s something worth fighting for.

From record product launches to multimillion-dollar expansions, what a sweet year it was for candy manufacturers.

As consumers’ demand for candy products continues to surge, America’s confectioners are gladly taking advantage of this growing market. And America’s 142,000 sugar farmers and workers are thankful to be a part of their success story.

Ferrero USA saw wild success in 2018 with more than 90 million Kinder Eggs sold in the United States. The president and CEO of Ferrero described this growth as “more dramatic than expected,” necessitating a 67,000-square-foot expansion in New Jersey.

Confectionary powerhouse Mars Wrigley also announced multiple investment projects across the country.

Mars Wrigley broke ground in February on a $30 million, 65,000-square-foot expansion at a plant in Waco, Texas that produces Snickers, Skittles, and Starbursts. A spokesman credited this expansion to the growing popularity of these candy products, saying that “the brands produced in Waco have seen fantastic growth.”

In October, Mars Wrigley announced they would be spending $142 million to invest in personnel and upgrade manufacturing capabilities in Cleveland, Ohio in order to support a brand new product: Hazelnut Spread M&M’s.

And October brought more cheers than scares for Hershey’s when the candy company announced that they expected to hit their first-ever $600 million Halloween season.

These record profits would not be possible without the hard-working men and women who produce America’s sugar under some of the highest labor and environmental standards in the world, setting the gold standard for sustainable sugar production.

And a vibrant U.S. sugar industry would not be possible without a no-cost sugar policy that levels the playing field against market-depressing foreign subsidies.

With all the expansion projects and economic growth, it makes you wonder why Big Candy companies are still complaining about a sugar policy that’s widely supported by Congress.

Here’s hoping that 2019 is as successful as last year for confectioners – and here’s hoping that success extends throughout their entire domestic supply chain.

Congressman Ted Yoho (R-FL) recently reintroduced his zero-for-zero sugar policy resolution that targets sugar subsidies around the world. As he’s explained before:

Sugar is widely considered the world’s most distorted commodity market. Global sugar prices have fluctuated more than 200 percent since 2008 alone and often fall well below the cost of producing sugar. Why? Because of the actions of a few government-dependent producers….

Congress must look for smart ways to get governments out of private business. That’s why I’ve proposed a legislative solution called the zero-for-zero sugar policy, which has been gaining traction among free marketers and has been hailed as a model for all of U.S. farm policy.

It calls on the elimination of U.S. sugar policy in exchange for the elimination of the foreign subsidies and unfair trading practices that are distorting the global market. It would reward the world’s most efficient producers rather than the most coddled. And it is 100 percent consistent with the smart modernization of U.S. trade policy championed by our new Administration and endorsed by the electorate.

The need for this legislation has never been greater. Subsidized sugar surpluses are stacking up around the globe. Prices on the world sugar market are tanking and today don’t even cover half the average cost of producing sugar.

And foreign governments are doubling down on their subsidies. Consider these recent events that cropped up in 2018:

• To alleviate the pressure of a subsidy-fueled surplus, the Indian government last year mandated that 5 million metric tons of sugar be exported and sweetened the deal in September by announcing transportation subsidies to offset the cost of bringing sugar to port. Meanwhile, sugar mill owners are asking India to raise the government-set selling price of sugar in order to artificially raise the value of their stockpiles. This is all in addition to the $1.7 billion a year in government handouts already flowing to the industry.
• Brazil launched a WTO case against India to protect its dominance as a global sugar exporter. Of course, Brazil’s thriving sugar industry would not exist without decades of government intervention and subsidies to the tune of $2.5 billion a year. 
• Aided by government subsidies estimated at $1.3 billion annually, Thailand has nearly doubled its production over the past ten years, 75% of which was exported into the world market in 2017/18.
• Much like India, Pakistan also hoped to control their domestic surplus last year by flooding the world market with cheap government-subsidized sugar. By incentivizing exports through $194 million worth of subsidies, the Pakistani government only served to further destabilize the world sugar market.

Enough is enough. It’s time to get foreign governments out of the sugar business, and Yoho’s sugar policy is the right recipe. That’s why the American Sugar Alliance, and the 142,000 U.S. farmers and workers it supports, is urging lawmakers to co-sponsor this common-sense solution.