April 9, 2001

Sen. Mike Enzi (R-WY) has urged Agriculture Secretary Ann Veneman to implement a "product for production" sugar plan that Enzi believes will improve future markets for Wyoming sugar beet growers while saving taxpayers millions of dollars.

Enzi said depressed refined sugar prices and high energy costs are causing severe economic stress on the entire sugar beet industry, but the future looks equally bleak because of the nearly 793,000 tons of sugar the government has in storage.

The senator asked Veneman to consider a policy of selling the stored sugar to processors on condition that the processors negotiate with sugar beet growers to reduce acreage that otherwise would be planted and harvested to sugar beets this year. Enzi also pointed out that it costs taxpayers about $1.4 million per month for the government to store the sugar.

"This sales policy is like a two for one sale. If the USDA reduces the domestic stock of surplus sugar that would alleviate the cloud hanging over our depressed market. Such a program would also benefit the taxpayer by eliminating current storage costs," said Enzi.

Enzi said this is one way to ensure future price stability for the nearly 1,000 sugar producers in Wyoming, Montana, Nebraska and Colorado who are working toward formation of a producer-owned cooperative.