| Sugar Facility Closures, Job Loss Down Under Current Policy |
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| The Sugar Beat |
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There have been fewer closures of sugar mills, refineries, and plants under America’s current no-cost sugar policy than at any time in the last four decades, according to data released by the American Sugar Alliance (ASA).
“During times like these, the U.S. economy needs all the good news it can get,” said ASA Chairman Jack Pettus. “Clearly, the current sugar policy has been an economic success.”
 The data, released at ASA’s 28th International Sweetener Symposium in Stowe, Vermont, shows that closures soared to 19 during the 1996 Farm Bill but have dropped dramatically since, with two plant closures reported since passage of the 2008 Farm Bill. Other Farm Bills during the past 40 year period averaged about 11 plant closures each, still five times higher than under the current policy. In total, 103 sugar-producing facilities have closed since 1970.
Pettus explained that the current sugar policy acts as a safety net for farmers and guards against low prices, which under previous Farm Bills, drove many producers out of business. Without the current policy in place, he noted, neither farmers nor their bankers could shoulder the financial risk necessary to produce a crop.
In addition to the calming effect sugar policy has had on a tumultuous sugar business, Pettus pointed to rapid production growth in the confectionery industry, as outlined in an ASA report also released today that cites U.S. government data showing candy production increasing nearly 9 percent since 2004, and 2.5 percent since the recession started in 2008. Pettus called that proof that the U.S. sugar policy is working.
“Congress should be proud of creating a policy that helps sugar farmers and food manufacturers alike,” he said, “and best of all, it hasn’t cost taxpayers a dime.”
The biggest decline in sugar facilities occurred under the 1977 Farm Bill, which had no sugar policy in some years.
Despite their recession-proof success, many large food manufacturers are lobbying Congress to scrap the current no-cost U.S. sugar policy and instead depend on foreign producers. Pettus said this would be a disaster.
“To return to a day when sugar prices fell below the cost of production, sugar farmers were exiting the business, and sugar workers were losing their jobs is economically and politically irresponsible,” he said.
“Sugar users are expanding profits and production, knowing they can depend on a geographically diverse domestic sugar industry to provide just in time delivery of sugar to their specifications. Sugar producers are able to pay their suppliers, their landlords, their bankers, and their taxes—and taxpayers aren't footing the bill,” he concluded. “That’s why the current no-cost policy should be extended in the 2012 Farm Bill.”
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