Sugar Beet Policy
Just over half of the
U.S. sugar production comes from sugar beets. are a $1.2 billion-dollar crop in the U.S. and are grown in 11 states.
In 1934 The U.S. Sugar Act was enacted
to provide subsidies for sugar beet farmers with a tax on sugar refining.
Farmers received a flat rate payment per ton of sugar contained in their beets.
In response, farmers grew larger beets. The problem occurred because the larger
the beet, the less sugar it contains. Because of no competition in the refined
sugar market, the processors had no incentive to improve the sugar extraction
method. Between 1934 and 1974 (when the Act was repealed), the production of
refined sugar from sugar beets dropped from 310 pounds per ton of beets to 240
pounds per ton of sugar beets.
The sugar beet industry still receives
government subsidies to the tune of about 55 percent. Some are in favor of the
current sugar program and others are in opposition.
The American Sugar Beet Growers
Association, in favor of keeping the current policy intact, states that the
economy benefits from the current policy by adding $20 billion annually to the
U.S. economy. They claim that the policy
benefits taxpayers because the net revenue of sugar beets raises each
year. They also claim consumers benefit because
the current policy provides an essential high-quality food ingredient at low,
stable and competitive prices. Workers benefit from the
current policies governing sugar beets because it created 372,000 direct and
indirect jobs.
The opponents state that the current
sugar program causes consumers to pay over $3.5 billion more for sugar due to
the high U.S. prices. The high prices
are especially detrimental to small businesses that end up paying more than
double the rate for sugar than they would in other parts of the world. The
opponents claim that by eliminating the subsidies to the sugar beet industry
over 17,000 jobs would be added in one year. Opponents propose a change to the
Farm Bill, where sugar is concerned. So far, all attempts to make these changes
have been defeated in the House of Representatives.
American Sugar Beet Growers Association. Benefits
of Current Policy. 2019. 6 November 2019.
Caplan, Bryan. Sweetness and Light: A Tale of
Sugar Regulation. 1 August 2019. 6 November 2019.
change.org. Reform the current U.S. sugar
program. 2011. 6 November 2019.
McConnell, Michael J. United States
Department of Agriculture: Economic Research Service. 20 August 2019. 6
November 2019.
Nicolais, Susan. Reform the current U.S.
sugar program. 17 July 2011. 6 November 2019.
