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Less than half of the area's sugarbeet growers decided to
participate in the first ever sugar PIK (payment-in-kind) program.
Offered by the U.S. Department of Agriculture two weeks ago, the
program gives growers the option to destroy a portion of their beet
crop in exchange for government-owned sugar. USDA officials hope the
program will alleviate the sugar surplus and boost market prices.
According to Russ Fullmer, ag manager at Holly Sugar, growers bid
1,688 acres of sugar beets to the program - 3.6 percent of the total
acreage contracted.
Fullmer wasn't surprised by the level of participation. "I'd
say the growers bid about 50 percent of the potential acreage,"
he said. "That's what we expected. We were figuring between
1,500 and 2,000 acres." Fullmer and his staff were busy meeting
with growers the last two weeks, helping them complete bid
applications.
Holly's agricultural staff completed the application process when
they sent the discs containing the bids to the Commodity Credit
Corporation in Kansas City Friday morning. "Now we can
concentrate on harvest," Fullmer said. Early harvest begins
Sept. 11.
Fullmer said most of the sugarbeet producers who participated in
the PIK program submitted the maximum amount. A few producers bid
smaller parcels. Growers won't be notified of bid acceptance by the
USDA for at least two weeks. In the meantime, growers will continue
to water the acres they selected to destroy in case their bids are
denied.
Fullmer was fairly certain, however, that most, if not all of the
bids, would be accepted. "We've been getting the impression
that most bids with no technical problems will be approved. There's
no way to be sure, though."
Holly Sugar hasn't heard from USDA officials about a deadline to
destroy the beets. Most growers will probably wait until after
harvest to address the question.
Even though the PIK program is considered by many to be a
band-aid to a larger industry problem, Fullmer is glad that some
producers decided to take advantage of it. "After you take a
close look at it, the program is actually pretty attractive,"
Fullmer said. "The growers that opted to participate will be
glad they did. There might be a few who will wish they'd had more
time."
Fullmer would much rather worry about the upcoming harvest.
"I hope this is the only year we'll have to consider a PIK
program. I don't want to do this again next year."
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