Sugar Farming

The sugar you sprinkled into your coffee this morning was likely grown by a farmer here in the U.S. Beet sugar is grown in eleven northern states and sugarcane is grown in three southern states. There is no difference in the sugars.

Luther Markwart, Chairman of the Board for the American Sugar Alliance, says the sugar industry provides 142,000 jobs across the country and they put over 20 billion dollars into the U.S. economy.

"The policy that we have to work with is a simple loan program. We’re producing sugar in the wintertime faster than what the market needs it. So, we take loans from the Department of Agriculture while we store everybody’s sugar. And then as they need it, we sell it to them, they pay us, and then we pay the USDA back with interest," says Markwart. "For 17 of the last 18 years, all of those loans have been paid back.”

“What’s unique in the sugar industry is that there are 21 factories, and the farmers own all of them. The farmers also need to invest over one-million dollars for specialized equipment and other costs. We can use planters to plant the seeds, but we have to have special harvesters, extra trucks, all of that. And then you have to be a share-holder in a farmer cooperative, so you have to buy shares into that company. So, it takes a lot," stated Markwart. "It will take about 450 to 500 farmers to make those kinds of investments, and probably close to a billion dollars to build a sugar processing facility."

Editor’s Take:

Not every CAD member will be located close to a sugar production area, but for those who are, they will appreciate just how large the impact can be on their local or state economy. Sugar producers not only benefit from their farming operation but also from their cooperative processing plant. The farmers and their coop purchase a lot of specialized equipment and plenty of trucks. Make sure that you reach out to those sugar producers in your area and let them know how you can help them meet their need for trucks while saving thousands through AgPack.