Alliance For Fair Sugar Policy

Advocates for the Modernization of the American Sugar Act

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House Fails American Small Businesses and Manufacturing Families

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It’s Time for the Senate to Say Yes to Fairness, Yes to Competitiveness and Yes to Protecting and Creating American Jobs

 

Washington, D.C. (May 17, 2018) – The Alliance for Fair Sugar Policy (AFSP) today released the following statement expressing disappointment that the House failed to modernize the 80-year-old U.S. sugar program:

“It is disappointing that some members of Congress fell for the misinformation, scare tactics and highly charged, exaggerated rhetoric floated by the handful of sugar mega-processors that benefit from the complicated and messy sugar program.

“Unfortunately, the vote count on the Foxx amendment reflects politics as usual in Washington – from backroom deals to bitter partisanship on major pieces of legislation. This vote does not reflect the thousands of small businesses, newspaper editorial boards and taxpayer watchdog, consumer protection and environmental groups that have called on Congress to modernize the sugar program.

“The vote also does not reflect the groundswell of support among Republicans and Democrats who believe in the need to reform the program for the benefit of the American people and U.S. businesses.

“We thank Representative Foxx for her leadership on this issue, as well as the many champions of modernization who spoke up on the floor today, including Representatives Kind, Goodlatte, Blumenauer, Speier, Sanford and Perry.

“We are committed to continuing this fight. Members of Congress on both sides of the aisle and a broad-based group of small, family-owned businesses and manufacturers, retailers, food and beverage companies, trade associations, environmental advocates, taxpayer watchdog organizations, responsible government advocates, think tanks and other organizations still believe American small businesses deserve a fair sugar policy that works for everyone in the supply chain – from farm to the retail shelf.

“We believe that the Senate will say yes to fairness, yes to competitiveness and yes to protecting and creating American jobs by modernizing the sugar program.”

ADDITIONAL BACKGROUND

As the only commodity subsidy program that has not been modernized by Congress, the sugar program forces manufacturers to pay twice as much for sugar as the rest of the world, putting American businesses at a competitive disadvantage when it comes to creating jobs.

More than 600,000 Americans are employed throughout every state in the country by small, family-owned businesses and other food manufacturers that include sugar as an ingredient in the products they make. The impact is especially great on small, family-owned businesses that are the backbone of the U.S. economy. Click here to hear directly from small business owners and employees who are negatively impacted by the outdated and outrageous sugar program.

A number of provisions of the bill were included in the Foxx amendment and are likely to be included in a Senate amendment. The proposed provisions would help ensure an adequate supply of sugar at reasonable prices for American businesses – while preserving the sugar program and without risking an appropriate safety net for farmers.

The Alliance for Fair Sugar Policy (AFSP) is a broad-based coalition advocating to modernize the outdated and outrageous U.S. sugar program. Formed by a sizeable group of small, family-owned businesses and manufacturers, retailers, food and beverage companies, trade associations, environmental advocates, taxpayer watchdog organizations, responsible government advocates, think tanks and other organizations, the group’s goal is to help level the playing field for American manufacturers and their families when it comes to being able to create jobs.

Economic Analysis: Modernizing the U.S. Sugar Program

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By: John Dunham
May 17, 2018

The farm bill is considered by Congress just once every five years. Each time, it’s accompanied by a number of amendments introduced by policymakers hoping to modernize our nation’s food and agricultural supply chain. It’s been reported this year that roughly 100 amendments have been proposed to the 2018 farm bill – one of which proposes to update the decades-old U.S. sugar program.

The sugar program is the only crop subsidy program that hasn’t been reformed in more than 80 years. This byzantine program of quotas, price supports and marketing and production restrictions leads to higher prices for sugar in the U.S. economy, and higher costs for food processors like bakers, pasta sauce makers, ice cream producers, candy manufacturers and more.

Basic principles of economics say that as supply increases, prices go down. By reducing costs for small businesses and food manufacturers, while not substantially changing support for the nation’s sugar farmers, these minor technical changes to the sugar program will lead to increased capabilities for companies throughout the United States to create more jobs.

Estimating the impact of the Foxx-Davis amendment approach to modernizing the sugar program, these modest changes could lead to an increase of roughly 1,500 jobs in food manufacturing. On the sugar processor side, there is about a $110 million cost, which represents less than ten percent of the economic benefit to processors. Overall, sugar growers provide one job for every $185,000 in sales and profits.

Comparing these job gains against losses in the sugar processing industry suggests that for every $7,432 in excess profits lost to sugar growers, food manufacturers could create an additional full-time-equivalent position. Creating a more robust market for sugar is an inexpensive way to benefit the economy.  I’d say $7,000 is worth a full-time job.

The proposal does not remove a safety net for farmers; rather it reduces unintended burdens placed on consumers that result from the complicated system of price supports. Additionally, while my estimate acknowledges a very marginal impact on sugar producers, it underscores a much more noteworthy impact on jobs in the food manufacturing industry, and the stability of the food market overall.

In addition to these benefits, the Foxx-Davis amendment will help level sugar prices over the seasons, ensuring that manufacturers don’t experience damaging price spikes or short-term shortages, both of which could substantially increase the price of products containing sugar during certain parts of the year.

Rather than benefiting the American economy, the current U.S. sugar program costs businesses and consumers as much as $4 billion. No matter your party, this amendment makes economic sense. Congress should vote yes to fix the sugar program.

John Dunham is managing director of John Dunham & Associates. Dunham specializes in the economics of how public policy issues affect products and services. 

More Than 100 Small Businesses, Ed Boards & Taxpayer, Consumer and Environmental Groups Agree: Sugar Reform Is Needed Now

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Washington, D.C. (May 17, 2018) – Today, as the House begins debate on amendments to the 2018 Farm Bill, the Alliance for Fair Sugar Policy (AFSP) released a list of more than 100 small businesses, newspaper editorial boards and taxpayer watchdog, consumer protection and environmental groups that have called on Congress to modernize the U.S. sugar program. The House is expected to consider an amendment – the Foxx-Davis Amendment – that would make modest reforms to modernize the 80-year-old U.S. program and ensure fairness for American manufacturers and consumers.

“We are encouraged by the groundswell of bipartisan support in Congress and among a broad coalition of small businesses and organizations of all stripes for modernizing the outdated sugar program,” said Jennifer Cummings, AFSP spokesperson. “This level of support for sugar reform is unprecedented. Now it’s time for the House to say yes to fairness, yes to competitiveness, and yes to protecting and creating American jobs.”

The small businesses and organizations that have called for sugar reform include:

Adams & Brooks, Inc. (California)
Albanese Confectionery Group (Indiana)
Albany Times Union Editorial Board
ALEC Action
American Bakers Association
American Beverage Association
American Commitment
American Conservation Coalition
American Conservative Union
American Enterprise Institute
American Frozen Food Institute
Americans for Prosperity
Americans for Tax Reform
Artfully Edible (New Jersey)
Atkinson Candy Company (Texas)
Biscoamerica Corporation (California)
Bissinger’s Handcrafted Chocolate (Missouri)
Brown & Haley Co. (Washington)
Bullsugar.org
California Hispanic Chambers of Commerce
Campaign for Liberty
Cato Institute
Center for Biological Diversity
Center for Freedom and Prosperity
Center for Individual Freedom
Center for Innovation and Free Enterprise
Center for Worker Freedom
Chicago Tribune Editorial Board
Clean Water Action
Club for Growth
Coalition to Reduce Spending
Competitive Enterprise Institute
Conservancy of Southwest Florida
Consumer Choice Center
Consumer Federation of America
Coral Street Catering (New Jersey)
Corse’s Cookies (New York)
Council for Citizens Against Government Waste
EFCO Products (New York)
Everglades Trust
Florida Defenders of the Environment
Florida Wildlife Federation
Food Industry Alliance of New York State, Inc.
Food Marketing Institute
Ford Gum & Machine Company (New York)
Free the People
Freedom Partners
FreedomWorks
Goetze’s Candy Company (Maryland)
Gold Medal Bakery (Massachusetts)
Grocery Manufacturers Association
Hawaiian Host, Inc. (Hawaii & California)
Heartland Institute
Heritage Action
Heritage Foundation
Horchata Mexican Food and Bakery (California)
Independent Bakers Association
Independent Women’s Forum
Independent Women’s Voice
International Dairy Foods Association
John Locke Foundation
Just Born Quality Confections (Pennsylvania)
Kimmie Candy (Nevada)
LA Area Chamber of Commerce
Madelaine Chocolate Company (New York)
Manhattan Beach Creamery (California)
Melville Candy Company (Massachusetts)
National Association of Manufacturers
National Black Chamber of Commerce
National Confectioners Association
National Consumers League
National Foreign Trade Council
National Parks Conservation Association
National Taxpayers Union Foundation
Noyes Bakery (California)
Orlando Sentinel Editorial Board
Peanut and Tree Nut Processors Association
Public Policy Foundation of West Virginia
R Street Institute
Reef Relief
Retail Bakers of America
Rio Grande Foundation
RM Palmer Company (Pennsylvania)
Rosalie’s Restaurant and Bakery (California)
Sanibel-Captiva Conservation Foundation
Sconza Chocolates (California)
Sierra Club
Sierra Club Broward Group
Small Business & Entrepreneurship Council
SNAC International
Spangler Candy Company (Ohio)
Sun Sentinel Editorial Board
Sweetener Users Association
Tampa Bay Times Editorial Board
Taste Elevated (Texas)
Taxpayers for Common Sense
Taxpayers Protection Alliance
TC Palm Editorial Board
Texas Association of Business
The Promotion in Motion Companies, Inc. (New Jersey)
Trade Alliance to Promote Prosperity
Treasure Coast Editorial Board
U.S. Chamber of Commerce
Valley Industry & Commerce Association (VICA)
Wall Street Journal Editorial Board
Washington Post Editorial Board

More than 600,000 Americans are employed throughout every state in the country by small, family-owned businesses and other food manufacturers that include sugar as an ingredient in the products they make. The impact is especially great on small, family-owned businesses that are the backbone of the U.S. economy. Click here to hear directly from small business owners and employees who are negatively impacted by the outdated and outrageous sugar program.

AFSP supports the Foxx-Davis Amendment, which would help ensure an adequate supply of sugar at reasonable prices for American businesses – while preserving the sugar program and without risking an appropriate safety net for farmers.

The Alliance for Fair Sugar Policy (AFSP) is a broad-based coalition advocating to modernize the outdated and outrageous U.S. sugar program. Formed by a sizeable group of small, family-owned businesses and manufacturers, retailers, food and beverage companies, trade associations, environmental advocates, taxpayer watchdog organizations, responsible government advocates, think tanks and other organizations, the group’s goal is to help level the playing field for American manufacturers and their families when it comes to being able to create jobs.

House Ag Committee Ignores Voices of More Than 600,000 American Workers Impacted by U.S. Sugar Program

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Washington, D.C. (April 18, 2018) – Today, during the House Agriculture Committee’s markup of the 2018 Farm Bill, there was no discussion of the U.S. sugar program – the only commodity subsidy program that has not been modernized in the past 80 years. It forces U.S. manufacturers to pay twice as much for sugar as the rest of the world, putting American businesses at a competitive disadvantage when it comes to creating jobs.

“The House Agriculture Committee had an opportunity to serve a spoonful of fairness into the sugar program, but failed to do so. The inaction is confounding, considering the sugar program benefits only 13 sugar mega-processors, with zero benefit for American consumers,” said Jennifer Cummings, spokesperson for the Alliance for Fair Sugar Policy. “It’s time for the family farmer AND the families that depend on manufacturing workers to be at the center of the conversation around agriculture policy in this country. We look forward to a robust floor debate so members of the House have an opportunity to modernize the sugar program.”

The program is a job killer. According to the U.S. Department of Commerce, every sugar-processing job subsidized through artificially high U.S. sugar prices costs three American manufacturing jobs. The impact is so great that the U.S. Census Bureau estimates the sugar program killed 123,000 jobs between 1997 and 2015. The program also puts in jeopardy the jobs of more than 600,000 people who are employed in every state across the country by small, family-owned businesses and other food manufacturers that include sugar as an ingredient in the products they make.

It’s time to say yes to fairness, yes to competitiveness and yes to protecting and creating American jobs.

The Sugar Policy Modernization Act (H.R. 4265 / S. 2086) was introduced by a bicameral, bipartisan group of lawmakers late last year and would reform the outdated and outrageous program. The proposal would help ensure an adequate supply of sugar at reasonable prices, so there is some competition in the U.S. market – preserving the sugar program without risking an appropriate safety net for farmers. Congress can reform the U.S. sugar program this year as part of its consideration of the 2018 Farm Bill, which sets government agriculture policy.

Click here to view a one-minute animated video that explains the issue.

Click here to learn more about the impact of the sugar program on your state.

Click here to hear directly from small business owners and employees across the country being hurt by the sugar program.

The Alliance for Fair Sugar Policy (AFSP) is a broad-based coalition advocating to modernize the outdated and outrageous U.S. sugar program. Formed by a sizeable group of small, family-owned businesses and manufacturers, retailers, food and beverage companies, trade associations, environmental advocates, taxpayer watchdog organizations, responsible government advocates, think tanks and other organizations, the group’s goal is to help level the playing field for American manufacturers and their families when it comes to being able to create jobs.

Massachusetts-Based Candy Maker Urges Congress To Reform The U.S. Sugar Program In New Video

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WASHINGTON, D.C. (April 19, 2018) – In a new video released today, Massachusetts-based Melville Candy Company owner Joseph Melville joins the chorus of voices calling for the modernization of the U.S. sugar program. The third-generation candy maker explains why the outdated U.S. sugar program is harming his business and employees.

“It makes us at a disadvantage competing with anyone outside of the United States that has got a world sugar price,” says Melville, who recently won the U.S. Small Business Administration’s 2018 Small Business Person of the Year Award for Massachusetts. “If we had better pricing on sugar that was fair, we could create more jobs. It would help grow our business for sure.”

Melville Candy Company employs more than 175 people in Randolph, Massachusetts, bringing vital economic support to the community. I think not only is it going to stimulate the economy [and] give us the opportunity to give more jobs, but also build our company in the United States,” notes Joe, an operations employee.

The Sugar Policy Modernization Act (H.R. 4265 / SB. 2086), introduced by a bicameral, bipartisan group of federal lawmakers late last year, would reform the outdated and outrageous program. The proposal creates an adequate supply of sugar based on a reasonable competitive approach that reaches from the farm to the retail shelf – without risking an appropriate safety net for farmers. Congress can reform the U.S. sugar program this year as part of its consideration of the 2018 Farm Bill, which sets government agriculture policy.

Melville Candy Company isn’t alone in calling on Congress to reform the U.S. sugar program. To hear what others are saying, watch the Alliance for Fair Sugar Policy’s new video series.

The Alliance for Fair Sugar Policy (AFSP) is a broad-based coalition advocating to modernize the outdated and outrageous U.S. sugar program. Formed by a sizable group of small, family-owned businesses and manufacturers, retailers, food and beverage companies, trade associations, environmental advocates, taxpayer watchdog organizations, responsible government advocates, think tanks, and other organizations, the group’s goal is to help level the playing field for American manufacturers and their families when it comes to being able to create jobs. To learn more about the Alliance for Fair Sugar Policy and the need for sugar reform, please visit FairSugarPolicy.org.

If you are interested in using any of the video(s), please contact info@FairSugarPolicy.org.

Alliance For Fair Sugar Policy Calls On Congress To Modernize The U.S. Sugar Program

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WASHINGTON, D.C. (April 17, 2018) – Today, the Alliance for Fair Sugar Policy (AFSP) released a broad-based coalition letter to Congress, encouraging members to modernize the outdated and outrageous U.S. sugar program. Backed by American small businesses, manufacturers, food and beverage companies, think tanks, environmental advocates, and other organizations, the group believes this year’s Farm Bill provides an opportunity for Congress to address the problems associated with the 80-year-old U.S. sugar program.

“The sugar program is a complicated mess that protects a handful of very large co-ops and sugar mega-processors to the detriment of American small businesses and food manufacturers as well as the hundreds of thousands of families that rely on manufacturing jobs for their livelihoods,” the letter states. “From New York, New Jersey, and Massachusetts to California, Texas, and Florida, members of the Alliance for Fair Sugar Policy and other organizations have raised their voices to call for modest reform that would provide relief to small businesses without hurting the farming
community.”

The sugar program is a complicated bureaucratic mess of price supports, market allocations, quotas, and government guarantees that are ultimately covered by taxpayer dollars. Moreover, the program forces manufacturers to pay twice as much for sugar as the rest of the world, putting American businesses at a competitive disadvantage when it comes to creating jobs. Click here to view a one-minute animated video that explains the issue.

According to the U.S. Department of Commerce, every sugar-processing job subsidized through artificially high U.S. sugar prices costs three American manufacturing jobs. The impact on the economy is so great that the U.S. Census Bureau estimates the sugar program killed 123,000 jobs between 1997 and 2015. Click here to learn the impact of the U.S. sugar program on your state’s economy.

The sugar program has zero benefit for the American consumer, and this “sugar shakedown” is baked into nearly every food, snack, and treat available in grocery store aisles. Independent estimates show this hidden tax costs Americans between $2.4 and $4 billion each year.

The Sugar Policy Modernization Act (H.R. 4265 / SB. 2086), introduced by a bicameral, bipartisan group of federal lawmakers late last year, would reform the outdated and outrageous program. The proposal creates an adequate supply of sugar based on a reasonable competitive approach that reaches from the farm to the retail shelf – without risking an appropriate safety net for farmers. Congress can reform the U.S. sugar program this year as part of its consideration of the 2018 Farm Bill, which sets government agriculture policy.

“While we are calling for modest reform, the Alliance for Fair Sugar Policy was not formed to eliminate or dismantle the U.S. sugar program. In fact, we believe the family farmer and the families that depend on food manufacturing workers should be at the center of the conversation and debate around agriculture policy in this country,” the letter concludes. “It’s time to say yes to fairness, yes to competitiveness, and yes to protecting and creating American jobs.”

You can find a full copy of the letter here. Signers of the letter include:

  • American Bakers Association
  • American Frozen Food Institute
  • Americans for Tax Reform
  • Bullsugar.org
  • Competitive Enterprise Institute
  • Consumer Federation of America
  • Consumer Choice Center
  • Council for Citizens Against Government Waste
  • Everglades Trust
  • Grocery Manufacturers Association
  • Independent Bakers Association
  • National Association of Manufacturers
  • National Confectioners Association
  • National Consumers League
  • Peanut and Tree Nut Processors Association
  • Small Business & Entrepreneurship Council
  • SNAC International
  • Sweetener Users Association
  • Taxpayers Protection Alliance

The Alliance for Fair Sugar Policy (AFSP) is a broad-based coalition advocating to modernize the outdated and outrageous U.S. sugar program. Formed by a sizable group of small, family-owned businesses and manufacturers, retailers, food and beverage companies, trade associations, environmental advocates, taxpayer watchdog organizations, responsible government advocates, think tanks, and other organizations, the group’s goal is to help level the playing field for American manufacturers and their families when it comes to being able to create jobs. To learn more about the Alliance for Fair Sugar Policy and the need for sugar reform, please visit FairSugarPolicy.org.

For more information about the Alliance for Fair Sugar Policy, please visit FairSugarPolicy.org.