Tim Deal, a fourth-generation farmer from Minnesota, testified in front of the Senate Agriculture Committee this week, telling members that while he’s proud to play a role in feeding America, “pride does not pay the bills.”
Deal’s testimony on the hardships of higher input costs and greater financial pressures highlights the grave challenges facing family farmers across the country and the immediate need for a five-year Farm Bill. Read his testimony as prepared.
“This hearing is timely and important. Many growers across the country are truly struggling under very difficult economic conditions,” Deal said.
Deal grows sugarbeets in Doran, Minn., and serves as Vice President of the American Sugarbeet Growers Association and as Chairman of the Board of the Minn-Dak Farmers Cooperative. Minn-Dak Farmers Cooperative is a 51-year-old grower-owned cooperative with more than 450 shareholders in Minnesota and North Dakota. In fact, every sugar factory and refinery in the U.S. is either cooperatively-owned, employee-owned or family-owed. Deal testified to the significance of this cooperative structure for farmers.
“Sugar prices for sugarbeet and sugarcane farmers have fallen by more than 10 percent over the past year. In addition, our story is complicated by the fact we must pay for on-farm expenses and investments, but also factory expenses and investments [such as capital improvements and operating costs]. That means all the increases in labor, fuel, fertilizer, and equipment costs over the past few years … fall on the sugarbeet and sugarcane farmer,” he said.
Despite these challenges, Deal noted the incredible benefits of U.S. sugar production for both taxpayers and consumers. Sugarbeet and sugarcane farmers have invested in a resilient supply chain and on-farm efficiencies. These investments, while costly for farmers, will enable American sugar production to hit a new record this year – coming on the heels of another record year. Consumers benefit from an affordable and available supply of sugar thanks to American farmers.
Yet, the Farm Bill is now woefully out of sync with the real-world stressors faced by farmers like Tim. It no longer provides a stable economic foundation for farmers to operate and produce crops for our nation’s food security.
“In addition to cost and price pressures, we are grappling with an out-of-date Farm Bill safety net,” Deal said. “Without a meaningful improvement in the safety net, many growers, including sugarbeet and sugarcane farmers, will find it harder to finance their operations.”