Good opportunity to be in sugar beet

Last year was the most profitable year in several decades for sugar beet growers.

his success story in the midst of generally bad economic news is largely attributable to sugar beet growers' increased efficiency. Growers have always been hard-working, and they have also learned to incorporate new technology. Another factor in their success was the decision by growers in 2002 to join to purchase the Western Sugar Company and convert it into the Western Sugar Cooperative.

Being a member of the cooperative is different than selling commodities on the open market. Once growers commit to the cooperative, they must plant the acres of sugar beets committed. A year ago, as the price of other commodities, such as corn, shot up (and then fell precipitously), there was the temptation to jump ship. However, those of us who stayed the course and planted our commitments are now enjoying the benefits of a record year.

Yields in the Western Sugar Cooperative states of Colorado, Montana, Nebraska and Wyoming averaged 22 to 26 tons per acre with 16 percent to 17 percent sugar for the 2008 harvest. This is considerably better, in tonnage and sugar content, than ever before.

As a third-generation Wellington sugar beet grower, I can tell you it's a great time to be in the sugar beet business. Sugar beets have consistently provided a good return on a grower's investment, without the volatility common in many other crops, and the outlook for strong sugar prices in 2009 and beyond is very positive.

The Western Sugar Cooperative storage facility at Wellington this fall collected 33,500 tons of sugar beets for a total value of $1.5 million. I think it is safe to assume that sugar beet growers will not be buying private jets or taking yearlong cruises. However, they will be paying their bills on time and making some capital investments to their farms, the economic impact of which will be felt throughout our community. In addition, employees of the Western Sugar Cooperative, who store, process and market beet sugar, will be secure in their good-paying jobs. Nationwide, the sugar beet industry provides 38,200 full-time jobs.

While sugar beets are not extravagantly profitable, they have consistently paid the bills for farmers. At the same time, U.S. consumers pay 22 percent less for sugar than consumers in other developed countries. The U.S. sugar program costs taxpayers nothing. In fact, in most years, the federal program returns money to the U.S. Treasury. Increased farm prices for sugar beets should have a minimal impact on retail prices. I hope consumers will remember this fact should retailers and marketers, as they are known to do, place the blame for increased retail prices at the feet of farmers.

The commitment of sugar beet growers such as my father and grandfather has provided the U.S. consumer with a safe, reasonably-priced commodity that at one time could only be afforded by the wealthy. Sugar beet growers are today receiving a fair return on their investment, which enables them to make a positive contribution to our economy, both within Larimer County and statewide. This economic sustainability helps growers stay in business and manage their land with good stewardship practices, enabling all residents to enjoy open land and scenic green fields.

source: coloradoan