As you and your staff continue negotiations on the 2002 Farm Bill, I want to reiterate the position of the Grocery Manufacturers of America (GMA) on the sugar section of the commodity title. GMA strongly supports the retention in current law of the one-cent forfeiture penalty.

GMA is the world's largest association of food, beverage and consumer product companies. With U.S. sales of more than $460 billion, GMA members employ more than 2.5 million workers in all 50 states.

We support the House provision on the sugar forfeiture penalty, paid by processors when they fail to repay their government loans, and strongly oppose the Senate provision that repeals the forfeiture penalty. Rather than being a no-net-cost program as some sugar program advocates suggest, the Congressional Budget Office has stated that this Senate provision alone will cost taxpayers $430 million. As the overall cost of the bill continues to be a major concern, we believe that the $430 million could be better spent on many other urgent priorities in the farm bill.

As you know, GMA supports real, market-oriented reform of U.S. sugar policy. While efforts to reform the program on the House and Senate floor were unsuccessful, we strongly urge you to hold the line against repealing the forfeiture penalty – one of the last remaining sugar program reforms.

Thank you for your consideration of our position. Please contact me if I can be of help in any way.

Sincerely,

Mary Sophos
Senior Vice President, Government Affairs
Grocery Manufacturers of America, Inc.


CC: The Honorable Charlie Stenholm The Honorable Tom Harkin The Honorable Richard Lugar The Honorable Patrick Leahy The Honorable Kent Conrad The Honorable Tom Daschle The Honorable Jesse Helms The Honorable Thad Cochran The Honorable John Boehner The Honorable Robert Goodlatte The Honorable Richard Pombo The Honorable Terry Everett The Honorable Frank Lucas The Honorable Saxby Chambliss The Honorable Jerry Moran The Honorable Gary Condit The Honorable Collin Peterson The Honorable Calvin Dooley The Honorable Eva Clayton The Honorable Tim Holden

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Staff Contacts

• David Stafford
  

• Gene Grabowski
  

CORRESPONDENCE
• March 15, 2002  GMA Letter to Congress Requests Retention of One Cent Sugar Forfeiture Penalty
• September 14, 1999  The Coalition For Fair Milk Prices Opposes Bill That Would Eliminate Dairy Reforms

BUZZ
• July 28, 2000  Coalition For Sugar Reform: Subsidy Program Is "Achilles' Heel" Of Trade Policy
COMMENT
• August 31, 2000  GMA Comments to U.S. Department of Agriculture, Foreign Agricultural Service, Request for Public Comment on Administration of FY 2001 Sugar Tariff Rate Quota
CORRESPONDENCE
• March 15, 2002  GMA Letter to Congress Requests Retention of One Cent Sugar Forfeiture Penalty
• April 5, 2000  Coalition for Sugar Reform Letter to USDA Secretary Dan Glickman, Oppose Surplus Sugar Purchases
NEWS RELEASE
• August 6, 2001  GMA Outlines Principles For Sugar Reform; Current Program Barrier To U.S. Trade