EDITORIAL: Regulating sugar imports good for the future of farming

Posted 9/22/15

Sugar beets comprise one of our region’s biggest crops and many of our neighbors count on sugar to make a living. But in recent years, that’s been harder for them to do because the market is saturated in cheap subsidized Mexican sugar.

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EDITORIAL: Regulating sugar imports good for the future of farming

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We love sugar, and not just because it makes everything taste better.

Sugar beets comprise one of our region’s biggest crops and many of our neighbors count on sugar to make a living. But in recent years, that’s been harder for them to do because the market is saturated in cheap subsidized Mexican sugar.

The U.S. Department of Commerce announced on Thursday that it has determined through a series of investigations that Mexican sugar sold in the U.S. is being subsidized by the Mexican government during production and it is being sold below fair market values.

In 2013 alone, the economic impact Mexican sugar had in America totaled $1.08 billion.

But now it looks like that will all soon be coming to an end. (See related story on Page 1.)

This is excellent news, not only for American sugar producers such as the sugar beet growers in the Big Horn Basin, but also for consumers, since it means a more stable price of sugar.

The price of sugar and goods containing sugar won’t see much of an impact at the consumer level, according to Ric Rodriguez, Powell farmer and vice-chairman of the Western Sugar Cooperative Board of Directors.

For instance, suppose you are a major manufacturer of candy and you find out you can buy all the sugar you need at a fraction of the price if it’s imported from Mexico. Any savvy business owner would opt for the cheaper option for ingredients, but still keep the price on the shelf the same, since it means an increase in profit margins without the consumers ever knowing the difference.

But the American farmers felt the difference where it hurts most — their wallets.

Unlike our neighbors south of the border, American sugar farmers are not subsidized by the government. Cost of production has gone up, particularly with fertilizer, and it is the farmers who carry that burden. This is why it is so important that their crops get a fair chance at being bought.

We are excited to hear that American sugar will likely be competing on a level playing field once the International Trade Commission makes its decision on Oct. 20.

Assuming it goes along with the Department of Commerce’s decision, then Mexican sugar will only be allowed into the U.S. market to fill the remaining needs not already filled by American farmers. This means American crops end up in American kitchens first, and imported sugar from Mexico is next in line.

Similar to how it’s better to buy locally raised beef, it is also better to buy produce grown nearby as well. There’s less transport needed to get it from the producer to the consumer, and it keeps the money at home — whether that’s regionally or nationally.

The other stipulation will be that when Mexican sugar is allowed to be sold in America, it must be sold at the same price as American sugar.

We were also happy to hear that Sens. John Barrasso and Mike Enzi are aware of what’s been happening with American sugar and also support the Department of Commerce’s decision. It’s nice to know that our representatives have the best interests of our local farmers in mind as they represent all of us in Washington, D.C.

Assuming all goes well, this year’s harvest could see more favorable conditions throughout 2015-16 as it gets processed and sold.

An added bonus is, this is a step in creating a bright future for American farming.

We are concerned about the future of American farms because fewer young people are getting into farming, and we believe maintaining a level playing field will also make farming a more attractive career option.

According to the Bureau of Labor Statistics, about 60 percent of American farmers are older than 55, and the average age has increased from 54 in 1997 to 57 in 2007 and then to 58.7 in 2014. This is the second-oldest profession demographic in the country, just behind truck drivers, which have an average age of 59.2.

We need to do everything we can to make sure farmers get a level playing field, and we need to make sure the career field of farming is an option that’s available for the next generation as well.

So, in our opinion, regulating Mexican sugar is a pretty sweet deal.

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