As part of Mainstreet Radio’s “Harvest of Frustration” series, Dan Gunderson reports on how sugar beet farmers in Minnesota and North Dakota are hopeful the 2001 harvest marks a turn for the better. In the past couple of years, sugar prices fell to 20 year lows, turning what was once seen as guaranteed big money into just another break even crop.
DAN GUNDERSON: David Kragnes says he's optimistic, despite a slightly lower-than-average sugar beet harvest. Kragnes Farm's a few miles north of Moorhead and is on the American Crystal Sugar board of directors. On a gray fall day, he's in the shop, preparing to put away his harvest equipment for the winter. His sugar beets are in storage. It will be months before they are processed and the sugar sold.
American Crystal will soon tell farmers what price it expects the sugar to bring. As he settles into his seat across the kitchen table, Kragnes says he anticipates black ink this year. And any profit is cause for celebration.
DAVID KRAGNES: There's the optimistic farmer in me wanting to rise up and say, OK, you planted a crop last year. And you're still in business. The prices are a little better than they were last year. So let's get out and plant another one and keep rolling.
DAN GUNDERSON: Kragnes says it's likely the sugar industry bottomed out and is beginning to rebound. Sugar processing plants have closed elsewhere in the country. And sugar production nationwide is down this year. Those are positive signs.
But Kragnes says, ultimately, his fate will be decided by the work of two entities. Congress is considering a new farm bill. And there are the trade negotiators working to establish a free trade zone with sugar-producing South American countries. Kragnes says, realistically, the days of big profits from sugar beets are over.
DAVID KRAGNES: I think it can be profitable. I think it can be one of the better crops in the valley. It can be good. But can it be as good as it was? I'm not very confident of that. Less pessimistic than I was a year ago, however.
DAN GUNDERSON: Sugar beets are a significant part of the regional economy. North Dakota State University researchers estimate the industry has a $2.5 billion annual economic effect in Minnesota and North Dakota. Most of the sugar beet production is in the Red River Valley. But sugar beets also play a role in the Southern Minnesota farm economy.
Southern Minnesota Beet Sugar Cooperative President and CEO John Richmond says this year's crop was very average. The Southern Minnesota co-op is coming off two very difficult financial years. But Richmond believes the worst is over.
JOHN RICHMOND: This is a commodity business. And it goes through cycles. And when it's good, it's really, really good. And when it's bad, it's really, really bad. And I believe we're starting to climb the uphill slope to being on the good days again.
DAN GUNDERSON: With this year's harvest complete, farmers are beginning to plan for spring planting, anticipating the next crop will be better and sugar prices will be higher. Dan Gunderson, Minnesota Public radio, Moorhead.
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