2018 is going to be a good year for sugarbeet growers. With the amended Mexican antidumping and countervailing duty suspension agreements going into effect last October, the beet crop going into the ground this spring will fully benefit from the price recovery provided by the amended agreements. Yes, there is and always will be work to defend and maintain the suspension agreements and make sure that Mexico complies with the provisions, but it is in the interest of both governments and industries that these agreements work as they were intended. These agreements will manage sugar imports from Mexico so there is no need for any discussions with Mexico regarding sugar in the NAFTA negotiations. What everyone must also realize is that USDA needs the best production and consumption data available to determine how much additional sugar is needed from Mexico or other quota-holding countries. Working with USDA to get that critical information is very important so they do not make decisions that oversupply the U.S. sugar market with imports. This is a very high priority for our industry.
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Tax Reform: Much of the focus this fall has been on the tax reform bill as it makes dramatic reforms to lower corporate taxes and remove a number of personal deductions. Section 199, or the Domestic Production Activities Deduction (DPAD), was eliminated in both the House and Senate tax bills. The DPAD is calculated as 9% of qualified production activities income of the taxpayer (in our case, the cooperative), capped at 50% of cumulative W-2 wages of cooperative employees. Cooperatives can retain it at the cooperative and use it for capital improvements or pass the deduction through to their members. Section 199 is especially valuable to the grower-owners of cooperatives because their share of the cooperative’s DPAD is based off their share of the total beet payment (or patronage) paid to growers, not corporate profits. It is likely that without this deduction, grower taxes could go up--not down. Senator Hoeven (R-ND) led the charge to amend the Senate tax bill to retain Section 199 and had the support of 194 organizations, and eight senators cosponsored the amendment. But the amendment faced a budget point of order which would have required a 60-vote margin instead of a simple majority to gain Senate approval, so the amendment was not offered.
Crop Insurance: There has been some confusion this spring over the new 2017 definition of “practical to replant.” However, it does not apply to sugarbeets. The change was made to the FCIC “basic provisions” covering all crops, but the sugarbeet policy has its own “special provisions” that contain a separate definition of “practical to replant” that remains untouched. The following is an explanation of the issue by our crop insurance legal counsel Ken Ackerman.
![]() Farm Bill -- As of January 20, it appears that the last great hurdle of completing the farm bill is being resolved. Getting an agreement on dairy policy has held up the farm bill completion for weeks, and finally all of the key players in the debate may have found a way to exit the conflict, embrace a policy and move the farm bill to its conclusion. We will expect the bill to be passed by both Houses and to the President’s desk for signature in early February. This has been a farm bill like no other. Now it must be defended from opponents who will seek various means and legislative opportunities to attack and undermine it. The battles over sugar policy are never over. Read our entire issue and back issues. Click here. Additional Imports
On April 10, USDA issued its most important supply and demand estimate of the year. Once this estimate is finalized, USDA typically uses this information to make a decision on any additional imports from our foreign suppliers. Roundup Ready Sugarbeets The 60-day public commenting period for the draft Environmental Impact Statement ended on December 13. A preliminary count indicated more than 1,400 unique comments being submitted for the record, of which roughly 90% were favorable and 10% in opposition to the full deregulation of Roundup Ready® sugarbeets. Your individual comments were very helpful to have as part of the public record in support of the technology, so we thank you for the time and effort you took to make a submission. This is your new blog post. Click here and start typing, or drag in elements from the top bar.
This is your new blog post. Click here and start typing, or drag in elements from the top bar. Super Committee
The implosion of the efforts of the Joint Deficit Reduction Committee (“Super Committee”) to cut the nation’s staggering deficits and mounting debt have left voters engulfed in bewilderment. Members of Congress privately shared with us that they had hoped the Super Committee would be successful, thus avoiding confirmation or reinforcement of voters’ suspicions that the Congress is, in many ways, dysfunctional. Roundup Ready Sugarbeets - Damaged Sugar Cane crop - Crop Insurance - Congressional Reorganization1/5/2011 Roundup Ready Litigation
Since we are actively involved in ongoing litigation, very little can be written or discussed publicly about the case. A strong reminder is extended to all growers that no interviews should be conducted until this case is completed. 2012 Farm Bill ~ Crop Insurance Price Election ~ Congessional Visits ~ Cleavinger Internship3/5/2010 2012 Farm Bill
House Agriculture Committee Chairman Collin Peterson is sending signals to American agriculture that all segments of farm and food policy need to roll up our sleeves and start work on the 2012 farm bill. |
Luther Markwart![]() Luther Markwart, author of Dateline Washington, is executive vice president of the American Sugarbeet Growers Association.
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