Sugarbeet farmers may seem financially better off than other commodity growers in the current economic environment, but predatory trade practices from foreign countries mean this crop might disappear in the U.S. unless a change comes soon.
Despite having sugar import agreements with 41 foreign countries, due to the lack of Tier 2 tariffs, foreign entities are dumping their excess sugar production into the U.S. market.
Some of these countries have increased the amount of over-quota sugar imports by almost 3,000%. This drives down the price of sugar for producers, making it difficult for them to profit from their crops each year.
This outdated tariff policy no longer protects the domestic market. That means while the 2026 sugarbeet crop is already planted, farmers did so without knowing if they’ll earn a profit from it this season.
Change is needed
The Tier 2 tariff meant to defend U.S. sugar production from discriminatory trade practices has not been updated for 26 years, and industry representatives said it has become wholly ineffective at protecting American farmers.
A study from the North Dakota State University Agricultural Risk Policy Center analyzed the impact of this excess sugar and found Tier 2 imports depressed domestic raw sugar prices and resulted in estimated losses of up to $1.8 billion per year for the sugar industry.
“The Tier 2 or out-of-quota sugar tariff is just no longer a deterrent for countries not to dump their product here,” explained Harrison Weber, executive director of the Red River Valley Sugarbeet Growers Association. “They’re able to produce it, they’re able to pay the duty, and then they’re able to sell it in this country and undercut us domestically.”
Weber said U.S. growers can’t compete with foreign governments and excess imports.
“We’re referencing the sugar that is out of quota, above and beyond our needs,” he said. “We already provide preferential access to 41 different countries each year, and we want to continue to import our needs to ensure that consumers and companies have access to the ingredient they need.
“We’re talking about everything above 100% of our domestic needs.”
Sugarbeets are different than many other commodities grown in the U.S. Every sugarbeet farmer is part of a cooperative such as American Crystal Sugar or Minn-Dak Cooperative and, therefore, they face extra costs at processing facilities.
“Not only do we have increased production costs, but we have costs at our factory as co-op owners,” Weber added. “We own the facility, [and] we pay the people a fair wage.”
“America’s sugarbeet and sugarcane farmers are facing another year of expected losses, as U.S. sugar prices remain weighed down by over-quota foreign sugar imports,” said Rob Johansson, director of economics and policy analysis for the American Sugar Alliance. “Excess imports of subsidized foreign sugar have resulted in more than $3 billion in lost income for domestic sugar producers over the past two years, and the reality is that some farms and factories may not be able to hold on much longer.”
Saving sugar producers
The American Sugar Alliance filed comments with the U.S. Trade Representative on behalf of the 11,000 sugarbeet and sugarcane farmers, and the more than 151,000 jobs associated with processing those crops into real, American-made sugar.
U.S. Sen. John Hoeven, R-N.D., along with other members of Congress are calling for action to protect U.S. sugar producers from these practices.
“It badly needs to be updated, or we’re going to lose our domestic sugar industry,” Hoeven said. “Because the Tier 2 tariffs are no longer relevant after 26 years, other countries can just dump into our market, and so we need a 301 action to adjust that rate. It’s that simple.
“If we lose our domestic industry, it will be detrimental to the American public,” Hoeven continued. “If the foreign producers wipe out our guys, we will lose some of our food security, and we’ll be at the mercy of their market. The impact isn’t just to our farmers; we’re talking huge employment and economic impact in rural America, too.”
Alongside Hoeven, Reps. Julie Fedorchak, R-N.D., and Troy Carter, D-La., and Sen. Elissa Slotkin, D-Mich., are leading the effort, securing support from 108 of their colleagues to use the Section 301 investigation into discriminatory trade practices by foreign countries.
In a letter sent to Ambassador Jamieson Greer of the U.S. Trade Representative, legislators and sugar organizations alike shared the need to investigate and update the Tier 2 tariffs.
“There are some complexities in this, but I think that Jamieson [Greer] is working hard at this,” Hoeven explained. “We also had [USDA] Secretary Brooke Rollins in front of our ag committee this week, and I brought it up to her as well. Also to Judge [Stephen] Vaden, the deputy secretary at USDA, and he’s very sympathetic as well.”
Hoeven is confident that with their efforts to get the right people on board with this issue, steps will be taken to correct the situation.
“It’s way past time,” he said. “We update the farm program every five years or so, and it’s just past time on this, and we need to get it done.”
Johansson added: “This is a top priority for the U.S. sugar industry, and we are grateful for congressional champions like Sen. Hoeven and Congresswoman Fedorchak, who understand the importance of defending our family farms, American factories and the small communities that are the lifeblood of rural America.”