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Other factors you should be aware of




Sugar Beet Farming – How ”Sweet” is it?

 

Few of us know that more than half of US sugar production comes from sugar beets. (Most of the rest comes from sugarcane.) US sugar beet production has grown significantly over the past decade, tied primarily to expanded processing capacity among sugar beet factories. US farmers produced 33 million tons of sugar beets on 640 000 hectares in 2000, versus 28 million tons of sugar beets on 566 000 hectares in 1990. Most sugar beets were processed in 26 factories near production areas to minimize transportation costs and deterioration of sugar content.

 

US sugar beets are generally grown in areas with cooler climates; however, some sugar beets are grown in warmer climates like the Imperial Valley of California.

 

US sugar beet producers incurred operating costs (inputs, hired labour, etc.) averaging 13,87 Euro per ton of sugar beets in 2000; and total costs (including depreciation in farm machinery, value of land and operator labour) averaged 28,17 Euro per ton. But costs vary widely among farmers due to differences in yields, input use, irrigation, farm size, and location.

 

At the 2000 average market price of 25,83 Euro per ton of sugar beets, 88 percent of US sugar beet producers were able to cover their operating costs and 35 percent were able to cover their total (economic) costs. In 2000, producers had the opportunity to participate in the payment-in-kind (PIK) diversion program to destroy sugar beets on a specified number of hectares in return for a like amount of government-owned sugar. With the 2000 diversion program providing nearly three-quarters of producers an average of 82 Euro worth of sugar per planted hectare, 89 percent of producers were able to cover their operating costs and 43 percent were able to cover their total (economic) costs of sugar beet production.

 

 

 

It is illegal for farmers to distribute fertilisers in their fields after a certain date in some countries. F example in Norway, it is illegal to distribute fertilisers after October 1st.

 

A farmer needs at least one week without (heavy) rain before he is able to use distribute the fertiliser, so occasionally; he will have to ask the government for a dispensation from the regulation if it has rained constantly for a long period prior to the deadline. If he distributes the fertiliser during heavy rainfall, the result will be that the fertiliser is washed away with the water to the nearby rivers.

 

Prices of natural gas, which is used to produce ammonia - the main input in all nitrogen fertilisers, is the primary factor in the pricing of nitrogen based fertiliser. Between June 2007 and June 2008, natural gas prices increased more than 65 percent. As a result, the cost to produce nitrogen fertiliser increased. However, the price dropped sharply in 2009 and continue to drop in 2010.

 

In 2007, 58 million tons of fertilisers were shipped to US agricultural producers by ocean freight, railroads, trucks, barges, and pipelines.

 

 




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