02/28/08 2008 sugar outlook

For people in the sugar industry there's a hope that the new farm bill will look very similar to the 2002 version. Kevin Combs is an industry executive who spoke at the recent Ag Outlook Forum. Combs sees two possible changes in the farm bill; one dealing with loan rates, the other with surplus sugar for ethanol production. COMBS "Industry is looking for higher loan rates and we think a half a cent to perhaps a cent higher. Probably the big question on the ethanol portion is how you operate the program on a no-cost basis. In order for the high fructose corn mills to process sugar into ethanol they're going to need a very cheap price and there's a pretty big difference between the refined sugar price today versus the six to seven cents that a corn miller is going to want to pay." Like many experts Combs sees less sugarbeet acreage in the US this year. COMBS "And it could be as much as ten percent for the industry. However with the success of new varieties of beets the yields, their production should still be adequate." Sugar cane production was down in recent years because of hurricane problems in the South. Cane acreage is also expected to be down again this year but cane sugar production should increase according to Combs. Voice of Idaho Agriculture Bill Scott