Sugar Producer

www.SugarProducer.com 31 Reduced Soil Tie-Up Enhanced N, P, K, and S Eciency Added Zn, Mn, Cu Don't Let Your Dry Fertilizer Locked Up Locked Up For More Info. Call (208) 531-4100 Or Visit www.LVF.com 161658LanFer12h.indd 1 8/26/16 9:45 AM Mexico breaking U.S. trade law by dumping low-priced and highly- subsidized sugar on the U.S. market. To help stabilize prices and avoid forfeitures, USDA sets the amount of sugar domestic producers may sell at not less than 85 percent of the predicted American consumption. The rest of the market is filled with foreign sugar, making America one of the world's largest importers. But imports are restricted beyond the amounts set through trade deals with 40 nations – again helping keep U.S. prices predictable. However, if imports exceed our needs, as was the case with Mexico's dumping, USDA may convert sugar to ethanol fuel, or non-food uses, to prevent an oversupply. A SECURE SUPPLY The policy is one of America's oldest farm policies, tracing its beginning back to colonial times. Its current structure is rooted in a time when America relied on imports to feed its population. Sugar was the first commodity to be rationed during World War II and the last to come off the list two years after the war ended. American policymakers realized relying on foreign nations to provide food staples was a security risk so they reworked America's sugar policy to encourage domestic production and protect U.S. growers from foreign subsidies and trade-distorting practices. It worked. Today, sugar is produced in 22 states. The industry supports 142,000 American farm jobs with an annual economic impact of $20 billion. Foreign consumers pay, on average, 20 percent more for sugar than American grocery shoppers. The cost candy manufacturers pay for refined sugar has remained remarkably flat since the 1980s – helping them make record profits. THE FUTURE American sugar growers and processors are just like other hard- working taxpayers. They would rather have no government price policy. They've built one of the most efficient systems in the world, and they believe they could out compete any another other nation if prices were fair. But the simple truth is prices— globally—are not fair. They are rigged to favor heavily subsidized producers like Brazil, Thailand, India and Mexico. That is why American sugar growers and producers have backed a multilateral "zero-for-zero" subsidy reform plan. Under the plan, America would give up its policy and eliminate its tariffs if foreign countries would eliminate their subsidies and market-manipulating policies. But until all the sugar-producing nations come to the table and put all the subsidies on the table, a policy is needed to protect American farms, jobs and supply. And luckily for America this policy continues to cost taxpayers $0. n Editor's note: Contact Phillip at phillip@sugaralliance.org.

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