News & Events - Archived News

[ Up ]
 
Big changes accompany spring of 2001
By Julie Pence, Ag Weekly Correspondent, The Times-News
April 9, 2001
 
TWIN FALLS -- The situation for area sugar beet producers just might be looking better for the coming season.

Acres in the Twin Falls district moved around significantly, with most of Bell Rapids growers taking advantage of the Idaho Power buyout and moving to areas within the district where water comes more cheaply.

Leonard Kerbs , Twin Falls ag manager for Amalgamated Sugar Co., said about 400 acres were planted during the third week of March in the Twin Falls District. "That's on the early side," he said.

In the many areas with extra dry soil, farmers are waiting until water is available before they plant. On the economic side of the industry, no ruling on the stuffed molasses issue has come down. But Senator Larry Craig, R-ID, isn't waiting around to see if the decision favors U.S. growers. Along with Senator John Breaux, D-LA, he is sponsoring a bill to close the loophole that has plagued producers since 1995. Last year 174,000 metric tons of sugar came through Canadian channels into the United States under suspicious circumstances.

Called "stuffed molasses," product that has molasses added to crystallized sugar right before entering the country is shipped into the United States; then the molasses is spun out of the sugar in a Michigan plant with the sugar sold mostly as cereal sweetener. The U.S. industry claims the strategy circumvents customs guidelines for importing sugar into the country.

Over the past three years U.S. producers have fought the company who makes stuffed molasses and are now at a court of last resort in Washington D.C. awaiting a ruling on an appeal.

"Our concern is that even if customs court rules in our favor, there's a possibility other companies could come in and do the same thing all over again," said Mark Duffin, Idaho Sugarbeet Growers Association executive director. "This bill would stop it from ever happening again."

The bill was introduced in September 2000, but there was not enough time to push it through, Duffin said.

"This is essentially the same bill as last year," said Mike Tracy, Craig's communication director in Boise. "I think it will have strong bipartisan support."

In addition, Craig has written a letter to U.S. Department of Agriculture Secretary Ann Veneman asking her to consider a "product for production" proposal.

He is asking her to approve a sale of Commodity Credit Corporation inventories of sugar to beet processors who will in turn negotiate with sugar beet producers to reduce their plantings for 2001.

Tracy said Craig met with Veneman personally Thursday to discuss the issue.

But Duffin warned that the USDA might not have jurisdiction over the CCC. Currently lawyers are wrestling over who has authority to release the CCC's sugar.

"I would like to see them get this solved before the farmers plant -- so they wouldn't have all that expense into it," Duffin said.

If the sugar is released for sale, it would also help the market, Duffin added.

"We would like to see a program that would dispose of that 800,000 tons of sugar so that it's not overhanging the market," he said.