BURLEY -- Still no word on a PIK program.
"The only thing I've heard is that nobody has heard
anything," said Steve Ulrich, Cassia County director of
Farm Service Agency.
Growers have been waiting for word on the federal
payment-in-kind program for several months.
"There is still considerable frustration that the USDA
has not made a decision on this yet," said Mark Duffin,
executive director of Idaho Sugarbeet Growers Association. A
month after Duffin's statement in the July 18 newsletter to
members a decision about the program has still not been handed
down from the USDA.
The PIK program has been part of the sugar industry's
congressional hearings on the long-awaited Farm Bill.
Under the program, which would help alleviate the sugar
surplus, crops would be destroyed in the field and growers
would receive payment equal to what they would receive if
beets were harvested.
While growers continue to wait for the decision, the market
also waits.
A recent market report on sugar trading said the domestic
(No. 14) market was dormant, awaiting word as to whether USDA
will implement a payment-in-kind program for beet growers.
"The Secretary (of Agriculture, Ann Venneman) has
waited to see how the numbers develop on this year's crop
before making a decision," Duffin said. "It is
likely she will make a decision very soon, and there is reason
to hope a PIK II will be implemented to dispose of the
government-owned sugar."
Idaho's congressional delegates have been involved in
advocating PIK for some time. Senators Larry Craig and Mike
Crapo, along with 18 other senators sent a letter to Venneman
to encourage the USDA to announce an expanded and improved PIK
program, said a June news release from Craig's office.
The letter said PIK would be "the best way to dispose
of the remaining large quantities of government-owned sugar,
reduce surplus production for the current year and strengthen
returns for producers and the marketplace."
USDA's John Love, chairman of Interagency Sugar Estimates
Committee and Senior Commodity Analyst for sugar and specialty
crops, commented on contributing factors to the domestic sugar
market at the recent 18th International Sweetener Symposium in
Sun Valley.
"A 2001/02 PIK would reduce CCC (Commodity Credit
Corporation) stocks in the short run and help to lift the
market overhang currently pressuring the mid-west beet sugar
market," Love said.
But PIK and reduction of CCC stocks are small factors in
the market, he said.
While speculation continues on how PIK would or would not
affect the volatile sugar market, growers continue to wait for
the decision. |