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Slow start to sugar beet harvest; Congress upholds price support

 The Associated Press1st Headlines
October 5, 2001
 
SAGINAW TOWNSHIP, Mich. (AP) -- A dry summer and wet fall are hampering the sugar beet harvest in Michigan, where processors are starting to receive shipments from farmers.

At the same time, Congress is standing by the industry, voting down a proposal Thursday to cut sugar price supports.

Michigan Sugar Co., based in this Saginaw County community, opened its 16 sites Wednesday. Company officials said they were looking for 7,000 to 8,000 tons of beets at each site Thursday. Sugar beet processing is expected to get into high gear in about 10 days.

The dry summer hindered sugar beet growth, and a wet fall is slowing the harvest. Monitor Sugar Co. last week operated one of its sites, at Bay City, The Saginaw News reported.

Michigan Sugar has 113,000 acres under contract, while Monitor has 73,079 acres under contract, the companies said.

The U.S. House gave sugar producers a break Thursday when it rejected an amendment to the Farm Bill that would have reduced sugar price supports.

The price support program keeps U.S. sugar prices artificially high, raising costs for candy and food manufacturers.

The amendment by U.S. Reps. Dan Miller, R-Fla., and George Miller, D-Calif., effectively would have cut the price floor from its current 18 cents a pound to 15 cents a pound, the American Sugar Alliance said.

It failed 239-177, with the Michigan delegation voting 11-4 against.

Favoring the amendment were Democrat John Conyers of Detroit and Republicans Vern Ehlers of Grand Rapids, Pete Hoekstra of Holland and Fred Upton of St. Joseph.

Opposed were Democrats Jim Barcia of Bay City, David Bonior of Mount Clemens, John Dingell of Dearborn, Dale Kildee of Flint, Carolyn Cheeks Kilpatrick of Detroit, Sander Levin of Royal Oak, Lynn Rivers of Ann Arbor and Bart Stupak of Menominee and Republicans Joe Knollenberg of Bloomfield Township, Mike Rogers of Brighton and Nick Smith of Addison.

"The thousands of hardworking sugar farmers in the United States applaud action by the House rejecting this anti-sugar-farmer amendment," said Bay County sugar beet farmer Ray VanDriessche, president of the American Sugarbeet Growers Association.

He said the vote shows that members of Congress "recognize the value of maintaining a stable supply of this vital ingredient in the food chain."

The Coalition for Sugar Reform, a lobbying group that includes major sugar buyers such as Coca-Cola Co., has pushed for an end to the price support and an opening to imports available at a fraction of the U.S. price.

The price support program "provides a protected market for a very few producers at the expense of every other American," group spokesman Jeff Nedelman said in 1999.

The group's Web site says sugar price supports cost consumers about $1.4 billion a year. They also "undermine the U.S. negotiating position on trade" by making it hard to challenge other nations' barriers to U.S. products, it says.