American sugar producers are scratching their heads over a USDA decision to allow an additional 300 thousand tons of refined sugar imports into the US this fiscal year. Undersecretary Mark Keenum says there are reasons behind the decision.
KEENUM "The '08-'09 marketing year for sugar there are still uncertainties about US domestic production, US domestic consumption, hurricanes as well as uncertainties about the actions of Mexico."
American Sugar Alliance Chairman Luther Markwart says sugar producers have been dealing with depressed prices and soaring import costs. He says USDA is basing the decision on unknowns and making projections 14 months down the road.
MARKWART "You cannot find a single producer in America who can tell you what his or her production will be fourteen months from now."
Markwart says its time for USDA to do what Congress intended when it wrote the new farm bill by taking a deep breath and waiting to fill in the blanks before acting further. He says USDA already acted on incorrect predictions in 2006 and in the end there was a sugar price freefall that has taken two years to reverse. He says economic pressures caused by faulty analysis forced some sugar producers out of business.
Today's Idaho Ag News
Bill Scott