10/05/07 US sugar policy

Acting Secretary of Agriculture Chuck Conner calls sugar 'a unique commodity within this agency.' The supply, demand and price are all controlled by USDA and Conner says that's 'not an ideal circumstance.' CONNER "The problem that we have identified is the potential for Mexican sugar to come into this country with more of less unfettered access. Should that happen we believe there is a strong potential out there for the Department of Agriculture to potentially end up owning a lot of sugar." Conner says USDA should not be in the business of buying cheap foreign sugar and then stockpiling it in warehouses. The House in approving its version of the Farm Bill acknowledged the problem but Conner said their solution doesn't solve the problem and only puts more pressure on the domestic sugar program. CONNER "Now we have I think rightly pointed out that the difference in price between what we would end up buying that sugar for and what we would end up reselling into an ethanol market on a fire sale type basis would be a pretty large gap." Conner says as the Senate works on its version of the farm bill it will recognize the problem and try to work toward a solution that won't cost the taxpayers millions of dollars and won't injury the American sugar industry. Today's Idaho Ag News Bill Scott