The Bulletin's Frontrunner / April 24, 2001
CQ (4/23, Monoson) reported, "Sugar producers are expected to return to Congress this week and -- in the face of growing sugar surpluses -- call for a sweetening of the government subsidy." The House Agriculture Committee "on Thursday will hear recommendations from growers on how to bolster the federal sugar program in the next farm bill. The hearing comes as critics have sharpened their attacks on the expensive program." Industry representatives "will ask Congress to retain the main components of the sugar program, which offers loans and includes a government-set price floor and restrictions on imports." Luther Markwart, president of the American Sugar Alliance, said "industry representatives plan to offer 'suggestions to strengthen the program and make sure it works better.'" The industry is also "expected to offer suggestions on how to deal with a huge sugar surplus that is depressing prices. Sugar prices are at the lowest level in 20 years." CQ added that because of a rider "attached to the 2000 agriculture appropriations bill (PL 106-387), sugar producers were able to hand sugar over to the federal government rather than repay government loans." At the "end of 2000, the federal government owned about 800,000 short tons of sugar," which "happened despite the fact that the Agriculture Department paid sugar beet farmers to plow under 7 percent of their crop in 2000. The surplus is expected to grow as international trade agreements force the U.S. to allow more sugar imports."
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