TWIN FALLS -- This has been one of the most chaotic springs
local sugar industry watchers can remember.
First there was the poor sugar price, then farmers were
concerned about getting their operating loans approved. Next
it was the likely drought and the resulting power buyback. And
then Mother Nature played her hand.
Last year the sugar beet crop got off to a great start,
this year has been mixed, said Del Traveller of the
Amalgamated Sugar Company.
"We've had everything from the ridiculous to the
sublime," he told fieldmen at the biweekly Twin Falls
County fieldmen's luncheon on Wednesday. Some beet fields were
blown out for the second time last weekend.
About 7 percent of the company's total acres were not
planted this season because of the voluntary irrigation load
reduction program offered by Idaho Power. That works out to
15,000 to 17,000 acres -- about the same acreage as was
enrolled in the federal government's PIK program last fall.
But the impact won't be the same because the crop is so
different, thanks to Mother Nature.
Traveller said the company stayed out of negotiations
between farmers as beet acres were redistributed across
southern Idaho, except for requiring that the transactions be
freight-revenue neutral. The growers involved in moving beet
acres must pay the freight difference so that is not an
additional cost for the company.
"There are about as many deals as there are
farmers," he added.
But despite all the chaos that has surrounded getting the
2001 beet crop in the ground, there is room for cautious
optimism, Traveler said. Early estimates indicate that
American growers planted about 10 percent fewer sugar beet
acres this season. And what acreage has been planted is being
buffeted by Mother Nature.
"This looks like a year when production is not going
to be great," he added.
Those factors combined to move sugar prices up by 15 cents
a pound in the last week.
"There's room for a little optimism, I think it's
bottomed out," Traveller said. But "it's not going
to turn around as fast as it fell off."
Weeds are on the agenda for the next fieldmen's lunch is
scheduled for June 13 at 11:30 a.m. at the Jade Buffet on
Kimberly Road in Twin Falls. |