Thomas, R-Wyo., argued the system is vital to offset cut-rate dumping by foreign producers.

Enzi, R-Wyo., said the sugar program has provided food manufacturers with an unwavering supply of sugar without cost fluctuations.

"All consumers have benefited from this steady supply," Enzi said. "The U.S. sugar policy has allowed producers in Wyoming and other states to provide for the country's sugar needs without going out of business."

The amendment, offered by Sen. Judd Gregg, R-N.H., failed 71-29.

Thomas, a member of the Senate Agriculture Committee, said current criticism of the sugar program is misplaced.

While U.S. retail price for sugar has remained stagnant, the price of sweetened products on the store shelves have soared. The real issue is the price charged by product retailers not the sugar producers, he said.

Thomas said the new sugar program proposed in the farm bill is important to Wyoming producers because it will help stabilize the domestic market while also protecting the industry from foreign subsidized sugar.

"In Wyoming, sugar beets are one of the largest cash crops and sugarbeet factories provide the economic base for three cities," Thomas said. "It is a key component to our western economy and one of the only crops that goes from the field to shelf entirely within the state."

According to studies, more then 6,000 jobs in Wyoming are directly related to the sugar industry.

Reauthorization of the Federal Farm bill, which is scheduled to expire in October of 2002, is currently being debated in Congress.

Meantime, Enzi said he has been working to reduce a looming threat to U.S. sugar growers posed by a surplus of Mexican sugar. Enzi met with senators from Mexico this week on this issue.