Sugarbeet Rebound

Sugarbeet growers and cooperatives in the U.S. are expected to have a stronger financial year ahead, with improved production and high prices for the 2020-2021 crop ushering in a recovery from the stressful growing season last year. Many growers and processors suffered through significant financial strains due to extreme weather, market uncertainty and severe crop production losses that plagued the 2019-2020 marketing year.

A new report from CoBank’s Knowledge Exchange Division details the market forces and production dynamics that suggest the industry is well-positioned for a financial rebound, as consumer demand for sugar remains high.

The U.S. sugarbeet harvest last fall marked the fifth biggest year-over-year decline on record, dropping 14% to 28.6 million short tons. Abandonment rates nationwide skyrocketed to the highest level since the Great Depression with 13.5% of U.S. planted acres not harvested due to ongoing wet weather issues. Yields also fell to the lowest level in five years due to late planting and poor harvest conditions. Many U.S. sugarbeet growers financed their spring crop planting with crop insurance indemnity payments and financial aid from USDA while processors struggled with less throughput and lower extraction rates amid high fixed costs.