WASHINGTON (American Sugar Alliance) — If the no-cost U.S. sugar policy were weakened or eliminated during Senate consideration of the Farm Bill, young sugar producers would exit the business and jeopardize future domestic supplies, a group of sugar farmers and lenders under the age of 35 told Senators in a letter today.
“Without the next generation of sugar producers stepping forward, the United States—already the world’s largest importer of sugar—would be at the mercy of foreign suppliers for an essential ingredient to our food supply,” the letter read. “This would weaken U.S. food security and would hold serious ramifications for food manufacturers and grocery shoppers alike.”
The 20 members of the American Sugar Alliance Young Farmer Advisory Board sent the letter to Senators representing the 18 states where sugar is produced.
Sugar policy, the group said, “acts as a buffer to the most distorted commodity market in the world, and without it, banks would lack the confidence to lend sugar farmers the resources necessary to survive.”
“Restricted access to capital would prove particularly punitive to young growers who often lack the assets and proven track records of our older colleagues,” read the letter.
Sugar policy, which the young farmers called “the primary risk management tool available to our industry,” has operated without taxpayer cost since 2002 and is projected by the U.S. Department of Agriculture to remain at no cost through at least 2022.
This no-cost feature, combined with affordable prices and ample supplies, has made sugar policy popular with lawmakers from both sides of the aisle, as well as sugar producers from developing nations who enjoy significant, duty-free access to the U.S. sugar market.
On the other hand, large food manufacturers are lobbying to depress the prices sugar farmers from the United States and developing nations receive for their crops. These lobbying efforts could result in a Senate Farm Bill amendment to gut U.S. sugar policy.
Such an amendment will likely face stiff opposition from lawmakers who were contacted by the Young Farmer Advisory Board. “Please keep no-cost sugar policy strong by opposing all anti-sugar amendments, and encourage your colleagues to do thesame,” their letter concluded.
-0-
CONTACT: Phillip Hayes 202-507-8303
For more information about the American Sugar Alliance and U.S. sugar policy, visit www.sugaralliance.org