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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Deep in the heart of Texas, approximately 112 farmers grow sugar cane across 41,000 acres along the banks of the Rio Grande river.

These farmers and their farmer-owned cooperative, Rio Grande Valley Sugar Growers, are important members of the Rio Grande Valley community and a critical part of the Texan economy. Unfortunately, they are all that is left of the once-booming sugar industry in south Texas.

Sugar production in the Lone Star State has a rich legacy spanning more than 200 years. However, economic and political hardships in the early 20th century forced the closure of the last of the sugar mills. In 1973, a group of farmers worked together to re-establish a sustainable sugar industry in the Rio Grande Valley.

Today, the Rio Grande Valley Sugar Growers are not only keeping this historic industry alive but also working to sustain the local economy. And America’s sugar policy has played a critical role in allowing sugar production to once again take root in Texas.

During the 2017/2018 growing season, their mill in Santa Rosa, Texas processed almost 1.7 million tons of sugar cane, producing more than 165,000 tons of raw sugar and nearly 60,000 tons of molasses. In fact, the mill produces enough sugar to provide an entire year’s worth of refined sugar to more than 7.7 million consumers.

And all of the hard work that goes into harvesting and processing that sugar certainly has a sweet effect on the economy.

According to Sean Brashear, President and CEO of Rio Grande Valley Sugar Growers, the sugar cane industry in Texas contributes $140.3 million annually to the state’s economy and supports an estimated 801 jobs statewide.

From the fields to the mill and everywhere in between, more than 300 people are directly employed by the sugar industry in the Rio Grande Valley. And hundreds more have jobs thanks to the economic impact generated by the mill and the farmers who supply it.

“We are proud to contribute to the rural economies that rely on the sugar industry,” Brashear said. “America’s sugar policy allows our farmers and workers to withstand a global market that is defined by foreign subsidies and depressed prices. Continued support of this policy will ensure that the legacy of sugar farming in Texas can survive.”

Just like sugar farmers and workers across the country, the Rio Grande Valley Sugar Growers are continually striving to become more efficient producers.

Farmers utilize GPS technology to minimize the use of diesel, fertilizer and pesticides and the Rio Grande Valley mill uses leftover cane from the milling process, called bagasse, as fuel to generate steam and electricity. When operating at peak efficiency, the mill creates enough electricity to power the nearby town of Santa Rosa.

The positive effects of the Texan sugar industry extend far beyond the state. Raw sugar is sold to a refinery in Louisiana and shipped by barge via the intracoastal waterway, bringing economic benefits to communities along the Gulf Coast on the way.

Many of the Rio Grande Valley farmers share a deep connection to this land. Board Chairman Leonard Simmons’ family has farmed in the Rio Grande Valley for 100 years.

“It’s important for us to share the story of sugar in the Rio Grande Valley,” Simmons said. “Producing sugar means supporting our families, contributing to our communities, being responsible stewards of the land, and continuing this heritage for the next generation.”

And Simmons credits Congress for supporting the sugar industry in Texas by approving a 2018 Farm Bill that maintains a strong sugar policy.

“Congress firmly rejected cutting our families, farms and livelihood out of the Farm Bill. We hope they will continue to stand up for sugar producers in Texas and beyond.”

Thankfully, the sugar industry in Texas is no longer simply a part of history.

Cornelius Fowler’s message was simple when he walked the halls of Congress this summer.

“If you kill the root, you kill the tree,” he said, “and the sugar industry is the root of the tree in my community.”

Fowler drives a truck hauling farm equipment for the Florida Crystals Okeelanta Sugar Mill in western Palm Beach County. His father and grandfather worked at the mill.

He was among the group of International Association of Machinists and Aerospace Workers (IAM) members who traveled to Washington recently to explain why America’s sugar policy is critical to rural communities.

“If there’s no sugar policy, we have no future, no job, no home,” Fowler explained.

The no-cost policy is part of the Farm Bill, which Congress passed last year. It exists due to subsidies and trade-distorting policies around the globe, and it helps U.S. farmers and sugar businesses survive amid price volatility.

The American industry employs 142,000 people in 22 states in mostly rural communities. Direct annual wages and benefits for the industry add up to nearly $1.2 billion – a figure that increases to $4.2 billion when economy-wide impacts are included.

Fowler is raising 5 children with his union job at Florida Crystals. It offered him job training, good pay, a pension and benefits. His son, the oldest, is considering medical school.

Union members met with about 30 lawmakers or their staff representatives during the visit. Most of the lawmakers were freshmen and new to sugar policy.

“A lot of people don’t get to visit Congress,” Fowler said. “Being able to sit down with them and tell them your story. Tell them exactly what your community, and your job, means to you.”

Joaquin Almazan, another IAM member, and worker at the Okeelanta Sugar Mill, was on the trip with Fowler. He’s a second-generation machinist, joining his father in the business. His son is now working at the mill.

“It has meant a good living for us,” he told the members he met with. “We have been able to put my daughter through college and buy a house. We have good health care and money for vacations. It’s everything to us.”

U.S. sugar policy, Almazan said, creates sustainable communities around Florida’s Lake Okeechobee. The money from sugar jobs is spent locally at other businesses and funds public infrastructure like schools and hospitals.

His sister works for a local business that might not exist without the good-paying union jobs at the mill.

“If I lose my job, she probably loses hers because most of us in town can’t afford to support local businesses without a sugar paycheck,” he noted.

Similar sentiments were shared by Carol Howard, a union worker with U.S. Sugar’s railroad that hauls sugar from Florida fields to factory. She joined Fowler and Almazan on Capitol Hill.

“I followed in my father’s footsteps when I started at the company more than a decade ago. Now my son now works here, and I have several family members working at U.S. Sugar,” she said. “Sugar has sustained my whole family, and it’s important that I help support the policy that sustains the industry.”

A strong bond with a unionized workforce isn’t isolated to cane companies, either. Half of America’s sugar comes from sugarbeets and 100 percent of beet factories are unionized. In addition to IAM, the International Brotherhood of Teamsters; International Longshore and Warehouse Union; Bakery, Confectionery, Tobacco Workers and Grain Millers’ International Union; Service Employees International Union; United Food and Commercial Workers International Union; Sugar Workers Union; and International Longshoremen’s Association all represent employees in the sugar industry.

These union workers receive strong salaries, a competitive benefits package, tuition, and certification reimbursement, and diversified safe workplaces.

It’s no wonder then that the international president of IAM – as well as leaders from several of other unions – weighed in so aggressively during Congress’ recent Farm Bill debate.  As IAM explained in a letter to all House members:

U.S. sugar farmers and sugar workers deserve a level playing field and should not be forced to compete with farmers subsidized and supported by foreign governments whether by direct loans, cash incentives or foreign ethanol programs.

U.S. sugar policy supports good union jobs in rural and urban areas of the country. The U.S Congress should not support outsourcing these jobs to countries with low labor and environmental standards.

Simply put, organized labor’s message is crystal clear.  U.S. sugar policy maintains good-paying jobs at home and that’s key to the survival of our communities.

Phosphorus is a naturally-occurring nutrient that is essential for plant life. But, it can be bad for our waterways by causing algal blooms which results in depleted oxygen in the water, which in turn harms plants and wildlife and can disrupt the ecosystem.

Maintaining clean and healthy waterways is a top priority for the sugar industry, which is why the farmers of the Southern Minnesota Beet Sugar Cooperative (SMBSC) have taken action to help stamp out the effects of phosphorus.

And their efforts have garnered praise from conservationists and regulators alike.

In 1999, the SMBSC looked to increase the production capabilities of their factory in Renville, Minnesota, approximately 100 miles west of Minneapolis. Because sugar beets are approximately 75 percent water, processing more than 2 million tons of sugar beets a season requires the successful management of more than a million gallons of water a day. A new wastewater treatment plant was necessary.

In an effort to minimize phosphorus levels in the Minnesota River Basin, SMBSC worked in conjunction with the Minnesota Pollution Control Agency during the permitting process to develop a plan to offset potential discharges from their wastewater treatment plant.

For every pound of possible phosphorus released, SMBSC would ensure that 2.6 pounds of nonpoint source pollution does not enter the waterways.

Unlike point source pollution, where contaminants enter the water at an identifiable point such as a factory, nonpoint source pollution occurs when rain runoff or drainage sweeps pollutants into water sources.

This type of pollution is responsible for most of the excess phosphorus found in Minnesota waterways. In fact, a 2004 study prepared for the Minnesota State Legislature found that “nonpoint sources of phosphorus account for 69 percent of the phosphorus entering Minnesota surface waters.” And of that amount, an estimated 25 percent of phosphorus came from cropland runoff.

“As farmers, we have a sincere respect for the resources that have been gifted to us,” says Kyle Petersen, chairman of the board for SMBSC. “We are committed to preserving a sustainable and healthy natural environment and knew that we had to take action to defend our waterways.”

As part of that commitment, SMBSC created incentives for farmers and cattle ranchers to reduce phosphorus pollution from nonpoint sources.

SMBSC worked with their more than 500 farmer shareholders to encourage the use of cover crops to minimize soil erosion caused by wind or rainfall and greatly reduce cropland runoff.

More than 75 percent of SMBSC growers now use a cover crop on their sugar beet fields. Not only are they taking strides to protect the environment, but SMBSC growers have found that cover crops protect the emerging beet plants and improve soil health, leading to an increased yield.

The cooperative has also worked with a local cattle company to stabilize a streambank and put into place measures to restrict cattle from entering the water and reduce pollution.

Not content to simply meet their goals, SMBSC has remained well below the phosphorus release limit established by their permit while exceeding their stated phosphorus reduction commitment.

SMBSC has been credited with preventing more than twice as much phosphorus from entering Minnesota surface waters as required by their permit. In total, that’s a reduction of more than 219,000 pounds of phosphorus.

The Minnesota Pollution Control Agency estimates that between 2000 and 2014, Minnesota reduced phosphorus in the Mississippi River Basin by 33 percent, with 8 percent being attributed to cropland best management practices.

We are proud to be leading the fight against nutrient pollution in the Minnesota River Basin,” says Steven Domm, President and CEO of SMBSC. “We work and live in this community and realize that preserving it for future generations is a shared responsibility.

These efforts have rightly won accolades from environmental groups and have been highlighted as an example of best practices for other facilities to follow.

Clean Up the River Environment (CURE) – a Minnesota non-profit dedicated to protecting the Upper Minnesota River Watershed – awarded SMBSC with CURE’s first “good business award” for their work in reducing pollutants. And the USDA Office of the Chief Economist has highlighted SMBSC’s efforts in a “Farm of the Future” profile.

SMBSC continues to be on the forefront of sustainable nutrient management practices. Through their work to raise awareness of the issues surrounding phosphorus pollution, their efforts to maintain healthy waterways will continue to have big impacts in Minnesota and beyond.

Visit SugarSustainably.org to learn more about how sugar farmers and workers are producing sugar sustainably.

The Wall Street Journal recently published a must-read article clearly articulating how foreign-government intervention drives wild price fluctuations in the international sugar market. The article rightfully identifies India as one of the most egregious offenders, helping “push prices toward their lowest level in a decade”:

The drop extends a two-year stretch in which depressed prices have squeezed profits at sugar refineries, hurt farmers whose livelihoods depend on the crop and led to tensions between nations that are major producers. A big part of the decline stems from India, which overtook Brazil as the world’s biggest grower of sugar in the 2018-19 season, producing 33.1 million tons.

Generous past subsidies, estimated to have valued about $1.7 billion per year, have fueled a sugar surplus that the government is now seeking to offload onto the world dump market. The Wall Street Journal continues:

Bumper harvests have swelled India’s sugar stockpiles to around 17.6 million tons, according to the USDA. The prospect of these being sold on international markets has weighed on global prices for much of the year.

Many participants in the sugar market expect the Indian government to renew an export subsidy program for refineries in the coming weeks, albeit with some tweaks. The policy, introduced last year, contributed to a 52% rise in exports and has drawn ire from rival producers. The World Trade Organization is investigating complaints by Australia, Brazil and Guatemala that the subsidies are illegal.

Just days later, India’s government decided to renew its export subsidy program, announcing it will dole out nearly $880 million in subsidies to incentivize the export of 6 million tonnes of sugar in the 2019/20 marketing year which begins on October 1. Sugar mills will receive an export subsidy of 10,448 rupees – or nearly $145 – per tonne of sugar.

International reaction was swift as Brazil and Australia condemned the latest round of subsidies, with one industry leader in Australia branding India’s decision “a massive market distortion.”  Bloomberg stated that the “subsidies are just another blow to the market that’s already suffering from oversupply.”

Amazingly, it appears that the Indian sugar industry wanted even more government assistance. An anonymous sugar miller expressed their disappointment to Reuters, saying, “We were expecting more than 12,000 rupees [$167] per tonne subsidy considering the drop in global prices.”

A drop in global prices driven in large part by India’s ever-expanding portfolio of government subsidies.

Due to government intervention, the economics of the world market are almost completely divorced from normal market signals and prices have fallen well below the cost of production. It’s increasingly clear that this is an unsustainable trend.

Faced with the volatility of the world market, America’s no-cost sugar policy helps level the playing field for our farmers and secures a stable supply of high-quality sugar for food manufacturers and consumers.

But America’s sugar industry is proud to be among the most efficient producers in the world and would like to compete in a free market. That is why we will continue to call on Congress to seek the elimination of all foreign sugar subsidies by passing Congressman Yoho’s Zero-for-Zero legislation. Dismantling all market-distorting subsidy programs will be the only way to truly establish a free and fair market for sugar.

Until then, we will continue to shine a spotlight on the foreign subsidies destroying the global market.

As 2018 came to a close, the USDA published a report about the global sugar market. It noted that the world’s dominant sugar producer (and subsidizer) Brazil was decreasing production because of “unfavorable weather and more sugarcane being diverted towards ethanol,” where prices are stronger.

The 8-million-ton drop in Brazilian production should have been a big market mover, but it wasn’t. Current sugar prices on the world dump market are lower than when the report was published, according to USDA data.

Why? Because the world sugar market is highly unpredictable. It is a dumping ground for subsidized surplus sugar that’s sold well below the global cost of production.

The report went on to note: “Global stocks are forecast to rise to a new high of 53 million metric tons” because of a massive stock building in another major subsidizer, India.

The intense market manipulation by foreign governments makes sugar unlike any other commodity.

Dan Colacicco, a PhD and former USDA sugar policy expert for 20 years, explained this unique dynamic in a presentation to the International Sugarbeet Institute last month.

“International sugar trade grew up in the Mercantile period and has a long history of government intervention,” he told the group. “This widespread intervention by foreign governments makes the price particularly volatile.”

Colacicco, who is a current advisor to the U.S. sugar industry, drove home this point by showing price volatility percentages for several commodities on the world market.  Sugar ranked the highest with a more than 9% volatility factor, whereas staples like corn, wheat, and milk were all under 5%.

Complicating factors in the sugar market, he said, is the fact that “sugar supply is insensitive to price.” Sugarcane, which accounts for about 80% of global sugar production, is a multi-year crop that is hard to exit quickly, and sugar is tough to store until prices improve.

That means surpluses can continue to flood the market even during low-price periods, driving prices even lower.

This reality can punish sugar producers, he said, since “sugar price and producer revenue are very sensitive to supply changes.”

Colacicco demonstrated this by showing the effect of a 10% supply increase on various sectors.

A 10% uptick in supply would sink sugar prices by nearly 30% and producer revenue by more than 26%. For comparison, a similar supply uptick would only affect beef prices by 13% and producer revenue by 12%.

The level of foreign subsidization, mixed with market volatility, and sensitivity to supply change explains why America needs such a strong sugar policy, he noted.

“Without America’s no-cost sugar policy, our farmers and factories would have a hard time surviving in this kind of environment. American food manufacturers and consumers who depend on high quality and sustainable sugar production would also be losers,” Colacicco concluded. “Congress recognized that and should be commended for delivering during the Farm Bill debate.”

During the sugar beet harvest, production runs 24 hours a day on Kevin Etzler’s farm in Minnesota. It’s far from an easy job, but sugar farmers take immense pride in providing an affordable and high-quality homegrown product.

But because virtually every one of the 120 foreign countries that produce sugar subsidize their industry in some way, depressing global prices, American sugar farmers rely on our strong federal sugar policy to survive.

“With so many new members of Congress who will be influencing agricultural and trade policy over the next two years, it is important to share with them first-hand the challenges that farmers are facing,” Kevin explains.

So, Kevin took his message directly to Capitol Hill.

Cane and beet farmers spent the last two weeks meeting with hundreds of lawmakers in Washington, DC, sharing their personal stories and thanking them for passing a Farm Bill that protects a strong sugar policy.

For Pete DuFresne, a sugarcane farmer from Louisiana, it is important that Congress understand that a vibrant sugar industry means economic opportunities for communities across America.

“We’ve grown sugar in Louisiana for more than 250 years. And if we didn’t raise sugar, the only thing we’d grow around here is the unemployment line,” Pete says.

The economic security that America’s sugar policy provides comes at zero cost to taxpayers because farmers receive loans they must repay with interest, not subsidy checks.

“Capital is the biggest hurdle to entry in farming – especially today when farm incomes are low.  Lenders will not extend loans to young growers, who lack the equity of our older peers, unless there is confidence of repayment,” Louisiana farmer Travis Medine says. “With our lenders, that confidence comes from the no-cost sugar policy found in the Farm Bill.”

John Snyder from Wyoming emphasizes that U.S. sugar policy has been essential to his survival against unfair foreign competitors. “We need policy, a good solid sugar policy” he says, “You know, we just want a fair shake.”

“We can compete with anybody, but I can’t compete against the Brazilian treasury, or the treasury of India, or Mexico when they were dumping subsidized sugar in our market and the government was paying their growers down there huge amounts of money to do that,” John explains.

Tim Deal from North Dakota agrees: “We cannot take on foreign treasuries and foreign governments and have them dump sugar into the United States. It will bankrupt us.”

Protecting a no-cost program that ensures a sustainable supply of sugar and supports 142,000 American jobs is a no-brainer. Thank you to the sugar farmers who recently made their voices heard by taking to the halls of Congress and educating lawmakers about the importance of U.S. sugar policy.

Learn more about America’s sugar farmers and workers by visiting the Faces of Sugar Policy.

Sugar farmers from coast to coast are in Washington, DC, this week and next to meet with hundreds of lawmakers and thank them for delivering a strong sugar policy in the recently-passed Farm Bill.

For most of the farmers, it’s their first trip back to the Capitol since the Farm Bill was approved, and given the bill’s overwhelming support, there will be many members to thank. There will also be a lot of new members to educate about the importance of maintaining the no-cost sugar policy in the face of a struggling rural economy.

So, what will be the main messages communicated? Look no further than sugar farmers’ and workers’ own words, as quoted on the materials they’ll be handing out.

“Farmers own most of the country’s sugar companies. We’ve literally bet the farm that our businesses will succeed, so we are always striving to improve.”

-Dan Younggren, Hallock, Minnesota
Sugarbeet Farmer

“We’ve grown sugar in Louisiana for more than 250 years. And if we didn’t raise sugar, the only thing we’d grow around here is the unemployment line. It’s sad that some people want to end that history and outsource U.S. sugar production to subsidized foreign industries that use child labor and don’t care about the environment.”

-Pete DuFresne, Paulina, Louisiana
Sugarcane Farmer

“The Domino Sugar Yonkers refinery has operated continuously in this community since 1938. The refinery is a source of pride that contributes millions to the local economy and provides good-paying jobs.”

-Matt Shue, Yonkers, New York
Refinery Manager

“It’s getting harder to make a living in sugar. Production costs keep going up, but sugar prices have barely budged in decades. Hawaii recently stopped growing sugar because of this economic squeeze, and I fear Texas won’t be far behind if U.S. sugar policy is weakened.”

-Leonard Simmons, San Benito, Texas
Sugarcane Farmer

“If sugar is not profitable, farmers lose more than our farms. We lose our businesses, our investments, and our local communities. A strong no-cost sugar policy supports our families and our communities.”

-Galen Lee, New Plymouth, Idaho
Sugarbeet Farmer

“We need the security the Farm Bill offers to keep my family growing for another generation. If my kids choose to farm, I want there to be a business for them to continue that opportunity.”

-Rita Herford, Minden City, Michigan
Sugarbeet Farmer

            If there’s no sugar policy, we have “no land, no future, no job, no home.”

-Cornelius Fowler
IAM Florida Sugar Workers Union

Couldn’t have said it better ourselves.

The global sugar market remains in turmoil, plagued for years by a subsidy-fueled oversupply. And as foreign sugar businesses struggle to stay afloat, governments around the globe are taking action.

Unfortunately for the market, the action being taken by most governments is to increase subsidies, which further depresses prices. Last week saw two governments – both big and small – intervene.

First for the big news.

India is rapidly expanding sugar production and exports thanks to government market interference. There, government officials have been steadily building upon a $1.7 billion-a-year subsidy system to bolster an inefficient industry.

The most recent announcement came last week as India’s government increased the selling price of sugar in a bid to help mills and farmers who are struggling with surpluses.

The irony of the government mandating a price hike to counter a government-driven oversupply was not lost on Tim Worstall, a columnist for the Continental Telegraph, an online European publication.

“We’ve an industry in oversupply. They’re making too much of the damn stuff. So, to deal with this we’re going to raise the minimum price? But, but, won’t that increase supply, reduce demand, making that oversupply even worse? Well, yes, it will, but you know election year politics….

“Yes, it’s election time, that’s why the Indian government has just raised the price of sugar. So, the money will flow through to the cane farmers who have lots and lots of lovely votes. And that’s it, that’s all there is to it. However stupid it is to raise the price of something already in oversupply.”

It wasn’t just a sugar superpower making news last week, either. Sugar oversupplies and rock-bottom prices are hitting small producers as well. Earlier this month, Kenya announced a direct subsidy of $27 million to sugarcane farmers to help them through this rough patch.

Unfortunately for Kenya’s producers, $27 million won’t even make a dent in the real issue that’s placing them at a disadvantage. Fixing the global subsidy problem and bringing about a fair market that gives all countries a chance to succeed is what’s needed.

That’s exactly what the Zero-for-Zero sugar policy, introduced by Congressman Ted Yoho (R-FL) in late January, aims to do. It would target foreign subsidies that are wrecking the global market and would roll back America’s no-cost sugar policy once a free market takes shape.

Yoho calls it a subsidy cease fire, and it’s the most refreshing piece of sugar policy news to come out of a government body in some time.

Yoho and his supporters rightly realize that sugar producers and consumers alike will win when we get government out of the global sugar business and let countries compete in terms of efficiency instead of subsidization.