The idea of plowing up fields of thriving sugar
beets goes against Craig Halfmanns instincts.
Still, thats what the Stephen, Minn., farmer and
hundreds of other sugar beet growers in the Red River Valley
are likely to do this harvest season.
The U.S. Department of Agriculture is going to pay the
nations sugar beet and cane farmers to destroy some of
their crops.
The Agriculture Department has again approved the
Payment-in-Kind program to reduce the nations surplus sugar
inventory and its storage costs, said Jim Jost a program
specialist with the state Farm Service Agency office in Fargo.
The government is paying $1.35 million a month to store its
741,000 tons of sugar, a USDA news release says.
The program should also help shore up the nations
faltering sugar industry and ease the threat of loan
forfeitures, said Mark Weber, executive director of the Red
River Valley Sugarbeet Growers Association.
In exchange for destroying some of their crops, farmers
will receive PIK certificates which represent
government-owned sugar in storage.
Area farmers will turn in the certificates for cash and
their cooperatives will take possession of the surplus sugar.
The USDA will divert 200,000 tons of government-owned
sugar. Farmers will be paid up to $20,000 to destroy a portion
of their 2001 beet and cane crops, Jost said.
Sign-up for the program will be held Sept. 1021.
The government offered sugar beet growers a similar PIK
program last year, but the bidding process will be more
competitive this year, said David Berg, Moorhead-based
American Crystal Sugar Cooperatives vice president of
agriculture.
More farmers will be bidding to divert fewer acres of
production this year, Berg said.
Last year, only sugar beet growers qualified for the
program and the USDA accepted acreage bids to offset about
300,000 tons of government-owned sugar, Berg said.
This year, the Red River Valleys beet growers may have
pledge to destroy more beet acres for the same maximum payment
of $20,000, he said.
On average, producers in the Red River Valley will pledge
to destroy about 25 acres of sugar beets to collect the full
payment.
Reducing the inventory by 200,000 tons is not going to
have a hugely bullish impact on the market, but we still think
its a step in the right direction. Berg said.
Weber called the program a good step toward restoring
sugars supply and demand.
American Crystal Sugar shareholders plowed under about
33,000 acres in last years program. Members of the Wapheton-based
Minn-Dak Farmers Cooperative destroyed about 8,700 acres of
sugar beets.
Readers can reach Forum reporter Jeff Zent at (701)
241-5526 |