In Advance of Valentine's Day, Davis and Kirk Call to End Job-Crushing Federal Sugar Program

In Advance of Valentine's Day, Davis and Kirk Call to End Job-Crushing Federal Sugar Program
February 9, 2014
More than 7,000 Illinois Jobs Depend on the Candy Industry
Recently Passed Farm Bill Continues Price Supports That Have Shipped 130,000 Jobs Overseas


CHICAGO - U.S. Senator Mark Kirk (R-Ill.), Congressman Danny Davis (D-Ill.-07), and Bill Kelley, Vice Chair of Jelly Belly, Inc. held a press conference today to call for an end of the U.S. Sugar Program that artificially creates high prices for sugar producers at the expense of consumers and Illinois-based candy manufacturers. The U.S. Sugar Program sets prices and limits exports, which has doubled the cost of domestic sugar compared to global prices.

Sen. Kirk and Sen. Jeanne Shaheen (D-N.H.) have introduced legislation in the Senate to end the program, but the effort was not included in the recently passed Farm Bill due to extensive lobbying from "Big Sugar." Congressman Davis is leading a similar effort in the U.S. House of Representatives.

"For decades, Chicago has been known as the 'candy capital' of the world, but that status is in jeopardy because of the federal Sugar Program," Senator Kirk said. "More than 130,000 American jobs have been lost over the past 15 years to countries like Brazil because of artificially high domestic sugar prices. It's time that we end this program that has cost American consumers nearly $14 billion since 2008."

"In 1987 Brach's, located in the 7th Congressional District, was Chicago's sixth-largest manufacturer, with 4,000 workers," Congressman Davis said. "The average worker spent 27 years in a Brach's plant. Largely due to the sugar subsidy those jobs, those careers, are gone now and the old Brach's factory in the industrial park on Chicago's Westside which once employed over 1,000 workers is a wasteland. The continuation of the sugar program today puts 600,000 American manufacturing jobs at unnecessary risk while the cost to taxpayers has skyrocketed and will continue to grow."

Candy and confectionery companies employ more than 7,000 people in Illinois. Jelly Belly, Ferrara Pan, Mars, Nestle and Tootsie Roll are just some of the nationwide household names with factories in the state.

On May 22, 2013, the U.S. Senate voted on the Shaheen-Kirk Amendment to the Farm Bill that would have ended the Sugar Program. As a result of significant lobbying by sugar producers, the amendment failed narrowly by a vote of 45-54. In June, the House voted on a similar proposal backed by Congressman Davis with a vote of 206-221. The Farm Bill was signed into law last Friday by President Obama.


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Statement of Congressman Danny K. Davis on the Sugar Program
February 9, 2014

In 1987 Brach's, located in the 7th Congressional District, was Chicago's sixth-largest manufacturer, with 4,000 workers. The average worker spent 27 years in a Brach's plant. Largely due to the sugar subsidy those jobs, those careers, are gone now and the old Brach's factory in the industrial park on Chicago's Westside which once employed over 1000 workers is a wasteland.

Illinois, Cook County, Chicago and particularly the 7th Congressional District may still rightfully be called the confectionary capital of America and the continuation of the sugar program today puts our workers and nationwide, 600,000 American manufacturing jobs, at unnecessary risk while the cost to taxpayers skyrockets.

The sugar program has not only failed to stabilize the sugar market it has made matters worse with the market careening from record high sugar prices and tight supplies after the 2008 farm bill to massive surpluses, low prices and high tax payer costs we are experiencing now.
What the sugar program has directly led to is the export of thousands of good U.S. jobs.

It has directly led to massive environmental damage in the Florida Everglades as critical wetlands have been diverted to sugar production.

The costly sugar to ethanol portion of the program does not enhance our energy independence.

The reforms we are proposing are a rational and reasonable reform which balance the needs of businesses, farmers, workers and taxpayers. These reforms will allow the Secretary of Agriculture flexibility in allowing sugar imports when necessary.

This is, as you can see here today, not a partisan bill. It is not a bill which pits urban against rural interests. What it does do is end the massive corporate welfare for a literal handful of sugar plantation owners at the expense of the rest of the nation.

I am a vocal and active supporter of initiatives to reduce obesity and improve the quality of the American diet, especially for children. But the sugar program contributes nothing to that effort and, in fact, takes public resources away from public health programs.

I grew up chopping cotton on a farm in Arkansas. I understand what it means for a family farm to survive by the sweat of their brow and I support federal programs which aid family farmers and which create a decent, living income for farmers. But I reject programs where 1% of the farms collect the majority of the subsidies. Everyone has a stake in this issue.

If you eat, you are involved in agriculture and you have a stake in America's oldest and most basic industry. So on this Valentine's Day please remember to take the time to remind your Representatives that only Congress can fix the sugar program.