WASHINGTON, DC -- A bipartisan group of Members of Congress, including Congressman Collin C. Peterson (DFL-7th District), today joined with the American Sugar Alliance to oppose legislation that would dismantle U.S. sugar policy.
"This is a fight that we will win, because we are right and they are wrong," Peterson said, referring to those who support the legislation by Rep. Dan Miller (R-FL) to do away with domestic sugar policy.
"This is a program that operates at no cost to the federal government, and more importantly, at no cost to the American taxpayers," Peterson continued. "In fact, since the last farm bill, sugar has contributed more than $130 million to the federal treasury through the fee assessments on the domestic industry.
"Why would anyone want to get rid of a program that makes money for the government? Why get rid of a program that generates 420,000 full time American jobs? This is why we are right, and why I predict that we will renew the sugar program for another five years."
A recent study by Landell Mills Commodities Studies on average retail sugar prices around the world showed that the average retail price on refined sugar in the United States is 39 cents a pound, five percent below the average price worldwide and 28 percent below the average price in other developed countries.
"The 7th District is the number one sugarbeet producing district in the state of Minnesota," Peterson added. "Clearly, the elimination of this program would be detrimental to the 7th District. Actually, eliminating this program would be detrimental to everyone, since chances are without the program the price of sugar will shoot up drastically. After the 40 year old Sugar Act expired in 1974, raw sugar prices went up to 60 cents a pound -- compared with about 22 cents today. Sugar is an essential link in our food chain, and we are fortunate to have a program that maintains a viable domestic sugar producing industry, providing consumers with access to a stable supply at a reasonable price."