Donald E. Anderson, Professor
Agricultural Economics
The WM-51 Regional Marketing Project has been terminated, however, several publications that have resulted from this research work will be forth coming in 1972. A regional publication titled "Economic Behavior in the United States Sugar Market," authored by Mr. Roy Ballenger of USDA Economic Research Service, summarizes many of the important findings of the WM-51 research study. This publication indicates that the greatest economic potential for increased sugar production in the continental United States exists in the Red River Valley area of the domestic beet industry and in Florida and Louisiana of the domestic main land cane producing area.
A manuscript of a publication on the economic potential of the Red River Valley sugar industry is nearing completion and is expected to be published in 1972. Work in 1970 on this study included an updating of previous linear programming analysis using current cost and yield data that has been developed in recent studies. This study will project the level of expansion of sugarbeet acreage that could be expected at a range of levels of beet prices to producers. Preliminary results of this analysis indicate that higher beet prices are required to make beets competitive in the rotation at current price and yield levels than was the case in the 1963-65 period. The primary reason for this result appears to be associated with generally higher yield levels for competing crops in the 1967-69 period while beet yields remained relatively stable. The result of this change requires higher beet prices before sugarbeets become competitive in the rotation in most regions of the Valley. The analysis does indicate, however, that considerable increases in beet acreage could be obtained at current market prices in the Red River Valley if producer contracts were available. This result demonstrates the strong competitive position of the Valley beet industry.
1971 Sugarbeet Research and Extension Reports. Volume 2, page 31.