News & Events - Archived News

[ Up ]
 
Osborne gets sugar co-op update
By Sandra Hansen, Ag Editor, Star Herald 
May 16, 2011
 

The future of the sugar industry, both locally and nationwide, was the subject of a meeting between U.S. Sen. Tom Osborne and area businessmen Saturday afternoon.

Osborne met with Kent Wimmer of Western Sugar, Chuck Hibberd of the UN Panhandle Research and Extension Center, Hod Kosman of Platte Valley Companies and Rocky Mountain Sugar Growers Cooperative board members Robert Busch and Kevin Hall.

The group explained the current status of the grower co-op, which last week announced its success in subscribing enough acres to proceed with the purchase of Western Sugar Company. The cooperative secured the 150,000 acres to make the purchase viable, but is still seeking to reach 170,000 acres throughout the four-state cooperative region Colorado, Montana, Nebraska and Wyoming. Interested growers have until Feb. 20 to submit their subscriptions.

Robert Busch, who is also president of the Nebraska Sugarbeet Growers Association, said the sugar industry, both beet and cane segments, are working together on a road map for the future of the industry.

"The industry has to agree on a plan and be a unified group before we can go to Congress and the Ag Committee," Busch said. "We made preliminary plans at the national (American Sugarbeet Growers Association) meeting last week, and will begin negotiations soon with the cane growers. This is all preliminary, but I feel very good about it."

The group also discussed a possible Sugar Payment-In-Kind (PIK) program for 2001.

Busch said the topic was discussed at length at the national meeting.

"The industry is looking at something besides PIK, although the 2000 program worked well," he said.

Wimmer, director of agriculture at Western Sugar, said he believes a set-aside program of some sort makes more sense than putting all the farmers resources into a crop and then tearing it up.

"The industry needs self-discipline," he said.

Wimmer and others in the group said legislation needs to be tightened up on the national level, to control and prevent such issues as the stuffed molasses coming in from Canada, and the NAFTA agreement that allows Mexico to ship its excess sugar to the U.S.

"I think the imports from Mexico should be a residual supply that comes in only when our markets need more sugar," Wimmer said.

Osborne said a lot of problems exist with the World Treaty Organization (WTO) and NAFTA agreements.

"In theory they ought to work, but in practice there are a lot of loopholes. A lot of the European nations just thumb their noses at the those rules."

According to Osborne, who is on the Senate Ag Committee, it is too early to tell what direction the new farm bill will take. However, he has some ideas he would like to see included.

"We need to enhance foreign trade, and make sure there is an adequate safety net for farmers," he said. "A lot of people are also worried about the consolidation and mergers going on that are eliminating markets. We need to come up with some alternative marketing methods, too."

Osborne stopped in Scottsbluff on a day-long tour of the Panhandle, including Sidney, Scottsbluff and Kimball.