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Sugar beet growers can get paid for
oversupply |
The
Associated Press
September 7, 2001 |
CHEYENNE, Wyo. (AP) Sugar beet growers have a limited sign-up period
for a second U.S. Department of Agriculture sugar payment-in-kind program
to reduce the oversupply of domestic sugar.
The agencys Commodity Credit Corp. announced a two-week signup from
Monday through Sept. 21.
Eligible growers can divert a portion of their 2001 crop from production
in exchange for sugar held by the Credit Corporation.
The program reduces government inventory costs and helps alleviate sugar
oversupply problems, including lower prices.
This year, local Farm Service Agency offices will take bid applications
instead of the sugar companies as in last years program.
Under the program, farmers can bid an amount based on how much they are
willing to leave unharvested. The USDA accepts bids that leave the largest
amounts unharvested for the least cost.
Payments are limited to $20,000. The department plans to announce by Sept.
28 which bids are accepted.
Earlier this summer, Sen. Mike Enzi, R-Wyo., urged Agriculture Secretary
Ann Veneman to swiftly implement the payment-in-kind program.
He applauded last weeks announcement that the program would be renewed.
By taking this much needed additional step to relieve sugar beet
farmers, we can reduce the surplus production for this year and strengthen
returns for producers from the marketplace, he said in a release.
Like countries in Europe and Latin America, the United States subsidizes
its sugar farmers. The government restricts imports of sugar from other
countries and buys sugar from the farmers when the wholesale price falls
below a certain level.
Because most sugar cane and sugar beet farmers across the nation had such
large harvests during the last season, the supply of sugar has exceeded
demand, causing wholesale prices to fall below the governments floor
price.
Now, the government is holding 741,148 tons of sugar in warehouses, and
the Commodity Credit Corp. is paying $1.35 million a month to store the
surplus. |
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