by Klodette Stroh
WIFE National Sugar Chairperson
Published September 9, 2011
Farm & Ranch Guide
Page 13
To the editor:
Agriculture has deep roots in America’s history.
To insure America’s freedom is to study our past history. This country learned a good lesson years ago. Sugar history shows us that after 40 years, in 1974 when the U.S. Sugar Act expired, the world price skyrocketed to 60 cents a pound. American consumers suffered. Then it dropped to 3 cents a pound and forced many sugar beet and cane farmers out of business, but consumers found no savings in their food prices.
To protect the taxpayers from sugar prices and the insecurity of supply, in 1981 Congress included a sugar program in the Farm Bill. It stabilized the price at a reasonable level, and assured American consumers and giant sugar users such as candy, cereal and soft drink makers a reliable and high quality supply of pure natural sugar.
American farmers are one of the most efficient farmers in their practices. Keeping in mind today’s high cost of production, sugar beet farmers in irrigated areas spend between $1000 and $1100 an acre. On the other hand, sugar cane farmers invest $1100 and $1200 an acre especially around the Florida’s everglades where sugar cane farmers have been sentenced to pay $300 million over 20 years to restore the Everglades.
Comparing American sugar farmers and our industry with foreign countries we discover 110 foreign countries subsidize sugar production, consumption and trade in some way. This makes sugar one of the most heavily subsidized and therefore distorted markets in the world. The present sugar program gives stability to U.S. sugar price and ensures plenty of sugar on our grocery shelves.
The European Union (EU) overhauled its sugar policy in 2005. They sharply reduced their domestic production and became dependent on foreign imports. Now, six years later in today’s highly volatile world sugar market, the consequences of being so dependent on foreign sugar suppliers are starting to surface.
Rationing sugar should bring back a lot of bad memories for America – we were in the same situation during World War II and were forced to ration sugar in 1942 because of foreign supplies dried up.
In fact, our sugar policy is different than EU’s policy because it operates at no cost to taxpayers and without subsidy checks to producers. The sugar program was constructed by Congress to ensure an adequate supply of homegrown sugar and local jobs in rural areas.
Despite the lessons of America’s past and the EU’s present, some in Congress are again looking to make us dependent on foreign supplies. Four bills have been introduced to destroy the sugar program that insures our market with sugar, provides jobs and annual income.
Current bills addressing sugar policy are:
S.25 by Senators Shaheen (N.H.) and Kirk (Ill.) introduced Jan. 25 “stop Unfair Giveaways and Restrictions Act of 2011.” Cosponsors Paul (Ky.) and Durbin (Ill.).
S.685 – Lugar (Ind.) introduced March 30 “Free Sugar Act of 2011.” Cosponsors Paul (Ky.) and McCain (Ariz.).
HR1385 – Pitts (Pa.) – Davis (Ill.) Introduced April 6 – “Free Market Sugar Act.” No other cosponsors.
HR 1739 – Dold (Ill.) – Blumenauer (Ore.) introduced May 5 – “Free Sugar Act of 2011.” Cosponsor Moran (Va.).
America is already more dependent on foreign suppliers than most would think. Trade deals have forced the United States to be the second biggest sugar importer in the world – imports account for approximately one-quarter of the market – and low prices in past years forced 33 U.S. sugar facilities to close between 1996 and 2008.
History is a wise teacher and if we look back and learn from our past mistakes we will prosper from this great teacher.