TWIN FALLS -- While nobody likes to see a wreck in the field, early-season challenges just might prove to be the best thing that could happen to the sugar beet industry.

Against a backdrop of sugar mountains sitting idly in warehouses, most growers set out this spring to fulfill their contracts and plant as usual. But Mother Nature had a different idea.

Intermittent rains and major flooding in the Red River Valley and frosts and crusting here in the Magic Valley changed the game plan. Acres are down, and those that did get planted are behind schedule.

That could make for a better market, according to Luther Markwart, executive vice president of the American Sugarbeet Growers Association.

"I think they're (markets are) going to be stronger because, obviously, production is not going to be what it was."

I addition, about 25,000 acres will not be planted in the Moses Lake area this year, due to failure of the Columbia River Sugar Co. there.

"Things are looking better (marketwise)," Markwart said. "But how fast and how dramatic the turn depends on our ability to pick sugar out of the CCC (Commodity Credit Corp.) and how the crop develops."

Referring to forfeitures last season wherein sugar processors forfeited sugar back to the CCC in lieu of payment on their operating loans, Markwart said there is 793,000 tons of raw stock that is weighing heavily on the market.

The U.S. Department of Agriculture has just announced that it will sell 100,000 tons of that surplus to ready buyers in the Upper Midwest for ethanol production, but that still leaves nearly 700,000 tons on hand.

"That's still a good amount," he said, adding that national production of beet sugar is about 4. 4 million tons, and production of all sugar is about $8.5 million tons.

Depending on how the crop goes, some of that excess could be sold back to the market, he said, and it's hoped that there will be other avenues for dispersing the rest. One option is another payment in kind program, which was used last year, wherein growers are paid to not harvest their crop.

But much is going to depend on this year's crop, he said.

Leonard Kerbs, Twin Falls district ag manager for Amalgamated Sugar Co., agrees, even though more than 15 percent of Magic Valley acres were planted late or replanted and the crop is 10 to 14 days behind schedule.

"With a higher-than-normal replant of the crop, it's logical to say production could be down. But there have been some years where you have a slow start and (growing) conditions are such that you catch up and have a normal crop," he said.

Either way, Amalgamated President Larry Corry doesn't look for a shortfall here to have a significant effect on the big picture.

"Our crop wouldn't make a big difference in the overall scheme of things," he said, adding that Amalgamated's piece of the pie represents about 10 percent of all the sugar sold in the United States. "But if there were a shortfall everywhere, that could make a difference."

The stakes are a bit higher in the Red River Valley of North Dakota and Minnesota, where 13 percent of the

national production is grown. American Crystal Sugar Co. had to do some fancy footwork to even get a crop in the ground.

"We certainly had a delay in our 498,500 acres," said Jeff Schweitzer, public relations officer for the company.

Optimum planting time for better-than-normal yields is the last week of April to the first week of May. After May 15, growers can expect less-than-average yields, he said. As of Wednesday, 482,000 acres were planted, but they are a good month behind that optimum planting window and lacking more than 16,000 acres at full throttle.

"If acres are not planted and processed, we'll eventually see what that turns out to be; however, the impact of those areas not planted will not be known 'til harvest," Schweitzer said.

As for those that were planted late, the big unknown is what Mother Nature will dish out.

"Sugar company expectations are, we're going to have average to below-average tonnage," Schweitzer said. "But, depending on sugar tonnage, it's too early to tell. The hope is we're going to have an excellent growing season."

Markwart said issues other than domestic production are taking their toll on the market, as well. The stuffed molasses issue with Canada and a quota discrepancy with Mexico are major factors in the overall picture.

"Once those things are fixed, that will send a strong message to the market," he said, adding that he is optimistic those fixes will come this year.

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2000-2001

Beginning stocks 2.2 million tons

Production 8.5 million tons

Beet sugar 4.4 million tons

Cane sugar 4.1 million tons

Imports 1.7 million tons

TRQ 1.25 million tons

Other .45 million tons

Total supply 12.4 million tons

* source USDA WASDE May report

2001 sugar beet

planting intentions

Idaho 203,000 acres

U.S. 1.43 million acres

* Source USDA NASS March report