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Sugar co-ops seek quick ag bill passage

By Mikkel Pates , Grand Forks Herald
December 4, 2001
 
FARGO, N.D. -- With the farm bill's sugar provisions mostly set in current farm bill versions before Congress, sugar groups are hoping the farm bill passes before the year's end so they don't have to re-defend their issues again next year.

The farm policy will be one of the hot topics as farmers meet for annual sugar meetings this year. Two of the co-ops have new top leadership:

Dec. 3 is the annual meeting for Southern Minnesota Beet Sugar Cooperative of Renville. It will be at the Willmar (Minn.) Holiday Inn and, as always, is closed to the news media. John Richmond, the co-op's president and chief executive, is in his first year at the post, replacing Al Ritacco, who died during the past year. The co-op has faced significant financial and legal challenges with crop insurers in the past year.

  • Dec. 4 is the annual gathering of shareholders for Minn-Dak Farmers Cooperative of Wahpeton, N.D. The event runs from 10:30 a.m. to 5 p.m. at the Fargo (N.D.) Holiday Inn. It will be the first annual meeting in which new President David Roche will preside.

    The meeting is chaired by Victor Krabbenhoft and includes elections and reports from sugar and byproduct marketers. It is followed by a 6 to 8 p.m. reception.

  • Dec. 6 is the joint annual meeting of the American Crystal Sugar Co. and the Red River Valley Sugarbeet Growers -- both also at the Holiday Inn in Fargo.

    Morning sessions include speeches by association President Craig Halfmann and Luther Markwart, executive vice president of the American Sugarbeet Growers Association.

    Crystal's meeting starts with a luncheon humorist, Steve Rizzo. Sen. Paul Wellstone, D-Minn., will speak at mid-afternoon Dec. 6, sometime between addresses by Robert Vivatson of Cavalier, N.D., Crystal's chairman of the board, and James Horvath, president and chief executive officer.

    Mark Weber, executive vice president of the growers association, says there will be numerous topics to discuss, including the farm bill. The Senate Agriculture Committee has passed a farm bill that is pending before the full Senate in the next several days. As in the past, the program is to be operated at no cost to U.S. taxpayers "to the maximum extent practicable," according to an American Sugar Alliance.

    Here are other summary points:

  • Non-recourse loan programs are authorized through 2011 at the same levels as have been in place since 1985. The secretary of agriculture can reduce the rates if foreign competitors reduce subsidies below their current World Trade Organization maximums.
  • The secretary of agriculture can impose domestic marketing allotments to balance markets under certain conditions. These only operate if Mexican and Canadian trade problems are fixed.
  • The bill also eliminates marketing assessments on sugar when companies sell sugar. It also eliminates a 1-cent-

    per-pound penalty processors pay when they forfeit sugar that has been pledged as collateral for CCC loan.

  • The bill also reinstates no-cost provisions originally in the 1990 sugar program, but inadvertently left out of the 1995 farm bill. Sen. Rick Santorum, R-Pa., has promised colleagues he'll try to eliminate sugar import restrictions and will try to reduce the loan rate from 18 cents a pound to 14 cents.

    "We believe we can defeat his amendment," Weber says. "Traditionally, we have always had much more support in the Senate. For sugar, we've got to hope that the whole package moves. Our growers grow these other crops, too."