American Sugar Alliance Director of Economics and Policy Analysis Rob Johansson says sugar producers are facing the same financial pressure hitting most crop farmers this year. Johansson points to weak commodity prices paired with rising input costs, squeezing both sugarbeet and sugar cane growers. “It’s been a story of high cost of production and pretty weak prices all around,” Johansson said. “Beet and cane prices are down, and the cost of production is up, it’s squeezing everybody.” Looking at the latest USDA WASDE report, Johansson said sugar supply numbers were largely expected, with domestic production near record levels and limited changes to demand estimates. “We’ve got a pretty good crop this year, almost record, so good domestic production both in cane and beet,” Johansson said. “Demand is pretty flat right now, and that’s another reason why we’re having a difficult time with having high levels of production as well as high levels of imports.” Johansson added that sugar growers are urging policymakers to provide additional assistance, noting the sugar loan program does not cover the cost of production, and bridge payment rates for specialty crops have yet to be announced.
