What a Year!

Where our industry stands as 2020 draws to a close

Published online: Nov 03, 2020 News Luther Markwart, Executive Vice President, ASGA
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This article appears in the November/December 2020 issue of Sugar Producer. 

As we prepare to close out the year, it is a time of reflection, anticipation and, of course, thanksgiving. Little did we know what would lie ahead when we welcomed 2020. So, let’s take a look back at all that has happened this year.

Devastated by a disastrous 2019 harvest, industry leaders and key legislators obtained $285 million in disaster aid to rescue growers. Mission accomplished in record time! Our crop was undervalued for the crop insurance price election, but values increased through collaboration with USDA. Victory! Pandemic-induced food hoarding was met by company employees filling high retail demands. Awesome! Private-public collaboration ensured crop inputs were delivered for the spring planting. Success! The review of the Mexican suspension agreements were completed, and they are in place for another five years. Fantastic! In March, our office closed in Washington, we pivoted to telework and continued to work effectively. We’ve held about 100 fundraisers with members of Congress and candidates, a brisk pace even by normal standards. Amazing! Political conventions and campaigning were held virtually for the first time in our nation’s history. Wow! We have a great crop headed into harvest, which is so desperately needed. Thank you!

These reflections represent a lot of hard work by a lot of individuals. The dedication and creativity of every grower, cooperative employee, organization staff, government employee and members of Congress is laudable. The challenges we face year in and year out are met with incredible people who collaboratively carry out their responsibilities with passion to make the whole system work. We give thanks to each of you and your families, and to our incredible staff and colleagues who rise to each occasion to solve problems.

We are currently analyzing draft dietary guidelines that substantially reduce sugar consumption, and which are not based on science. There are also efforts by the U.S. trade representative to give Brazil, who subsidizes and dumps sugar, more access to our market. We have been blessed by ASGA director of government affairs Zack Clark, who has done a fantastic job working with Congress to address these problems. He has also painstakingly worked on a new tool to help our grower-leaders work even more efficiently and effectively during their annual fly-in visits to Capitol Hill as we prepare for the next farm bill.

We are intervening in a lawsuit on biotech labeling. The lawsuit, filed in California, would force refined products, such as beet sugar, to be labeled as biotech food even when DNA or protein is not present. This would cause huge price distortions like our industry’s experience in 2016 due to Vermont’s biotech labeling law. Legal challenges and legislative proposals to ban various pesticides continue to threaten safe and effective tools for producers. Scott Herndon, our vice president and general counsel, is engaged and providing important leadership on these issues. Scott leads the D.C.-agriculture community seeking to provide voluntary, incentive-based opportunities for farmers to monetize conservation practices to combat climate change. Like it or not, Congress and the administration are focused on this issue. Scott has been on the cutting edge of this work, which is important to you for all your commodities.

The challenges we face year in and year out are met with incredible people who collaboratively carry out their responsibilities with passion.

Congressional work to combat COVID-19 is far from over. The House-passed HEROS Act, a comprehensive but expensive relief package languished in the Senate over the summer and fall. The Senate took steps to pass a modest relief package that failed to gain the necessary support. There is agreement between parties and chambers on many COVID provisions; the disagreements hang in large part on the price tag. Every member of Congress we talk to expects, despite modest progress here and there, that a final agreement will come after the election. We expect a relief package to be at the top of the congressional to-do list. Thankfully for agriculture, COVID relief provisions enjoy bipartisan support. While differences exist between chambers, the positions are bridgeable.

In December, Congress will also need to fund the government. Election results will drive spending priorities, so there is a fair amount of uncertainty on the exact outcome. Anything is possible, but we expect spending levels to look a lot like they did this past year. This includes funding for beet research, lending authority for sugar loans, and other important discretionary agriculture spending.

In 2021, new agendas will emerge from the legislative and executive branches regardless of who is in power. As our nation seeks to address problems like COVID, infrastructure, rural broadband and a host of other important issues, balance of legislative priorities with fiscal restraint is necessary. The pandemic has significantly impacted government revenues and spending. Massive federal spending has skyrocketed the national debt. Tough choices and smart policies are required. 

We will conduct virtual fly-ins in February and March to brief congressional staff and members on industry developments from 2020. Legislators will take a fresh look at several issues. We predict that the security and resiliency of supply chains for essential goods will be a key topic. Thankfully, our industry’s reliability is second to none.

Our ASGA annual meeting will be held virtually in 2021. Mark your calendars for Feb. 2-3, 2021. Pam Alther, our director of administration, has been working hard to create a fantastic virtual platform. We hope beet growers who typically do not attend our annual meeting will join us. This will give each of you a chance to see what lies ahead for 2021 in terms of markets, policies and issues that impact your farming operations. Please visit www.americansugarbeet.org for our program. Like other organizations, we expect grower participation to be significantly larger than our in-person meeting. Of course, we are thankful for the generosity of our sponsors to help make our meeting a success.

Enjoy the upcoming holiday season. We look forward to another year full of accomplishments for our industry!