Sugar Amendment Likely During Farm Bill Debate

When the House is able to turn its attention to farm legislation, it is likely that a sugar amendment will be offered to the current version of the farm bill. The House Agriculture Committee passed its farm bill on July 27, and the legislation was scheduled to be brought to the House floor on September 13-14. With congressional attention now focused on the tragedies of September 11^th, it is unclear when the committee's farm bill will be debated.

The ag committee's farm bill contains several provisions about the nation's sugar program, including an extension of non-recourse price support loans at existing levels for 10 years, and an authorization of domestic supply controls including a payment-in-kind program and marketing allotments. If an amendment is allowed to the sugar provisions, it will be offered by Reps. George Miller (D-CA) and Dan Miller (R-FL). IDFA supports the Miller/Miller amendment as modest reform toward a market-oriented sugar policy. IDFA has long been an advocate to provide U.S. companies' access to market-priced sugar.

The Miller/Miller amendment would make modest market-oriented reforms by lowering the price support levels by a penny a pound and by increasing the forfeiture penalty by a penny a pound. These changes would translate into real savings of two pennies per pound that would benefit ice cream and yogurt manufacturers, as well as other sugar users, taxpayers and consumers. The Miller/Miller amendment will also strike those provisions of the committee's bill that increase both the type and level of government controls in managing sugar production and marketing decisions. IDFA believes that, instead of government-administered marketing allotments and production controls, market forces should determine who supplies the market and at what level.

The Miller/Miller amendment could save taxpayers $841 million over 10 years and could save consumers $500 million per year, as compared to the current sugar provisions offered in the committee's bill.

When the farm bill is brought to the House floor, IDFA encourages its members to contact their congressional representatives in support of the Miller/Miller amendment. Members will receive an Alert when action is needed. For more information, visit the sugar policy section of the IDFA website. ###