Dateline: Washington
Frosty and wet are sought-after elements for your favorite beverage on a hot summer day. But frosty and wet weather patterns during the October harvest only turned excitement into misery for beet growers.By: Luther Markwart, Sugar Beet Grower
Frosty and wet are sought-after elements for your favorite beverage on a hot summer day. But frosty and wet weather patterns during the October harvest only turned excitement into misery for beet growers.
Killing cold temperatures in Montana and Wyoming saw tops and exposed beets turn black. Rains on top of saturated ground in much of the southern Red River Valley and through southern Minnesota brought early signs of despair. It was a very difficult harvest in many areas, but growers’ persistence and some late breaks by Mother Nature will allow the entire crop to be harvested in most areas.
With better market prices, we wanted to get every beet possible through our factories. Putting the harvest behind us is a welcome relief. Our focus now turns to making sure the beets store well as they wait for processing.
The November USDA estimate projects sugar surpluses at the end of the current fiscal year (September 30, 2010) of more than a million tons — which is almost 10% of consumption. Given that we have passed through the hurricane season with virtually no impact on the cane crop, traditionally the next possible threat is a freeze to Louisiana’s cane crop in late December as they work to complete their harvest.
These factors, along with beet storage and processing, and volumes of Mexican imports, will help USDA determine on April 1 whether we need more foreign imports for the remainder of the fiscal year.
Our good and faithful customers continue to call upon USDA to announce large amounts of imports in order to drive down sugar prices. This is a decades-old battle fought every year between buyers and sellers. We should be comforted that USDA will be guided by the new farm bill and make import decisions primarily on facts and not speculation. Everyone is watching this closely.
Foremost on growers’ minds is the status of the Roundup Ready® lawsuit. As of this writing, there remain far more questions than answers. On December 4, Judge White in San Francisco is slated to hold a brief scheduling meeting to determine how and when the “remedy” phase of the case will proceed.
While the industry is actively involved in ongoing litigation, it is detrimental for anyone directly or indirectly related to our industry to publicly speculate about any aspect, outcome or impact of the case. If you are asked any questions by the media regarding the case, a simple response is to say nothing. Your grower association and cooperative leaders are being kept appraised of all activities related to the case on a timely basis and will inform growers as quickly and responsibly as they can.
Of great importance to our industry is what happens at the United Nations Climate Change Conference in Copenhagen, Denmark, December 7-18. At least 65 heads of state are expected to attend — with most claiming that failure to agree on a global solution is not an option. However, there is great skepticism that developing countries — especially China — will offer up much at the negotiating table. Keep an eye on this.
While a climate change bill has passed the U.S. House, the Senate will not complete its work on the bill this year, and questions remain on how quickly they can move a bill during the 2010 election year. This bill potentially remains highly detrimental to our industry, and we continue to try to find ways to soften its impact.
It is clear that Congress will be in session right up until Christmas in order to complete most of its work. The health care debate and a struggling economy have consumed tremendous amounts of time and effort. Given that the 2010 congressional elections will be very contentious, most controversial votes need to happen in 2009.
The ASGA’s 2010 annual meeting will take place January 31 to February 2 in the port city of Charleston, S.C. Plan to join us in “Charting a Course for Our Future,” with a program comprised of several outstanding topics and speakers looking at key issues impacting the future of our industry. Here’s an overview:
Sunday, January 31 — Registration and Welcome Reception.
Monday, February 1 —
• House Agriculture Committee Chairman Peterson (via videoconference) previews the legislative challenges in agriculture in 2010.
• Eric Peterson of the Center for Strategic and International Studies provides a phenomenal presentation on the “Seven Revolutions” that will drive major global changes in years ahead and how they will affect you.
• The huge impact on agriculture by a more-aggressive Environmental Protection Agency will be outlined by Don Parrish, American Farm Bureau.
• American Sugar Alliance economist Jack Roney will give us his analysis of the ever-dynamic sugar market in 2010 that will drive grower income.
• USDA’s FSA/FAS Under Secretary Jim Miller will speak at lunch to give insights on how USDA will manage the U.S. sugar policy in 2010 under the new farm bill.
Tuesday, February 2 —
• Jim Wiesemeyer (Informa) will look at the impact the hot issues of this year and next will have on the 2010 elections.
• A look at Roundup Ready litigation by industry legal counsel (closed session).
• Industry analyst Janet Anderson will present an overview of the huge burdens the climate change legislation could impose on the beet sugar industry.
• Barbara Hiden, vice president of the American Beverage Associa-tion, reviews political and economic issues surrounding sweetener taxes.
• Retiring ASGA board members will be recognized at the President’s Lunch, and the new ASGA officers will be introduced.
• A reception and dinner will conclude the meeting, and we will look ahead to the 2011 annual meeting in Tucson!
Check the ASGA’s website — www.americansugarbeet.org — for updates, registration details and useful links.
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