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Future looks sweeter for Idaho beet industry
Industry officials awaiting ruling on appeal of molasses import case; Veneman asked to consider 'product for production' proposal
By Julie Pence, The Times-News
April 14, 2001
 
TWIN FALLS, Idaho -- The situation for Twin Falls, Idaho, sugar beet producers just might be looking better.

Acres in the Twin Falls district moved around significantly, with most of Bell Rapids, Idaho, 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., says about 400 acres were planted during the third week of March in the Twin Falls District.

"That's on the early side," he says.

In the many areas with extra dry soil, farmers are waiting until water is available before they plant.

Stuffed molasses

On the economic side of the industry, no ruling on the stuffed molasses issue has come down. But Sen. Larry Craig, R-Idaho, isn't waiting around to see if the decision favors U.S. growers.

Along with Sen. 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.

During 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 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," says 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 says.

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

In addition, Craig has written a letter to USDA Secretary Ann Veneman asking her to consider a "product for production" proposal.

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

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