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 Between 1934 and 1974 (when the Act was repealed), the production of refined sugar from sugar beets dropped from 310 pounds per ton of beets to 240 pounds per ton of sugar beets.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.