| Good news! I have just received confirmation from USDA Deputy
Undersecretary Hunt Shipman that sugarbeet producers will NOT be barred
from participation in the 2001 PIK program if they had participated in the
2000 PIK program and have increased their planted acreage this year over
last year.
In an attempt to resolve this issue to the satisfaction of the beet
sugar industry - and to the satisfaction of our Congressional supporters
who weighed in on the issue this week - Shipman said the USDA's PIK rules
to be issued in the next day or so will NOT make such producers ineligible
for this year's PIK. However, he said the 20001 PIK producer contract
rules WILL contain "ironclad" language providing that any
producer whose bid is accepted this year will NOT be eligible to
participate in a future PIK if that producer has expanded his acreage from
this year. I told him this is a fair and reasonable way to proceed, and I
have informed our Congressional supports we are happy with this result.
Shipman also said this year's PIK experience has been an extremely
unpleasant one for the current administration at USDA, and he seriously
doubts the Veneman USDA would agree to implement another PIK in the future
anyway. (I just listened respectfully, without choosing to debate the
"what ifs" about the course of future political decisions at
this or any other USDA administration).
We should keep a couple of things in mind. The immediate priority was
to get beyond this problem for right now so this year's PIK program can
get underway. Today's decision by USDA achieves that result. Secondly, as
you know, the farm bill now pending in Congress contains a provision that
gives the USDA clear authority to operate a pre-plant PIK diversion
program, such as our industry proposed early this year in the form of a
"Product-for-Production" program. You recall that USDA attorneys
and Secretary Veneman decisively concluded the USDA does not currently
have legal authority to operate such a pre-plant paid diversion program.
That's why our industry's farm bill proposal to Congress provides clear
authority to operate such a program, and thus far we have been successful
in keeping this provision in the House Agriculture Committee-approved
bill. And, there is every indication the Senate Ag Committee will support
this provision, as well. So, looking into the future, if there is a need
for USDA to operate a sugar PIK program, it will more likely be considered
in the context of a pre-plant program. Thus, the issue of ineligibility
for producers who have expanded acreage will be a mute point, since the
decision to bid would be made prior to planting expanded acreage.
A few minutes ago, I spoke to the FSA staff who are continuing to work
through this evening on the final PIK signup rules notice, and they are
very hopeful it will be released sometime tomorrow (Friday). I expect to
receive word as soon as that notice is published on USDA's website, and I
will alert you at once.
|