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Show PAGE FIFTFEN UPD Act? 1 Beefl Dini(IuslDy To The Sogor ndusy . Sugar production in the United States is carefully regulated under terms of the Sugar Act Each year the USDA makes an estimate of how much sugar will be consumed in the United States during the next calendar year. This figure, which has been set at 11.8 million tons for 1973, is amended or accepted and then becomes the basis upon which quotas are established for the domestic beet sugar area, domestic cane sugar area, the Philippine Islands and the various other foreign countries which supply the United States market. The domestic beet sugar growers provide approximately rd of the nation's sugar. After the overall beet sugar quota has been decided upon a decision is made whether it is likely that unrestricted production would provide more sugar than needed, plus reserve inventories recommended by Congress. If the USDA decides the likelihood of production in excess of quota exists it then places restrictions on acreage and allows each grower a proportionate share of the production it decides will be need one-thi- ed. The proportionate shares are based on the size of the production the individual grower has had in recent years. This allows him to continue to operate his farm andequipment with relatively the same volume efficiency as in the past but not to grow. The Department of Agriculture enforces its decisions concerning acreage allotments, and other regulations concerning production of the crop, through use of a "conditional" payment to the grower, the "condition" being that he follow regulations. An excise tax on all sugar production is imposed in order to provide funds forthe "conditional" pay- ,he ? c.. " on J .urt Growers: r ne.y tor , uaVrt " ta fond i . J. .c c;cetety ment In years when the USDA decides overproduction of quota is not a likelihood, such as this year, no acreage allotments are imposed and growers may build acreage history for possible years of restriction to come in the future. Of course, factory capacity also might be a limiting factor in some cases. Operation of the Sugar Act often is cited as the most successful of the nation's farm programs. Congratulations to the Utah sugar beet industry We're proud to have played a part in your growth. SD0 CogMolO GGo the Union Pacific railroad people |