US sugar beet growers expected to remain unprofitable even in 2027

Sugar beet production in the United States could remain unprofitable in 2027 despite an expected rise in sugar prices and a gradual improvement in market conditions. According to forecasts based on FINBIN data, average losses for growers reached $486 per acre in 2025 and could narrow to $473 per acre in 2026 and $167 per acre in 2027. However, some farms with lower production costs may return to profitability as early as next year.

Difficult financial conditions have pushed US sugar beet acreage to its lowest level since 1960, at approximately 1.026 mln acres. Drought has added further pressure on production, with up to 96% of sugar beet acreage experiencing some degree of dryness or drought toward the end of the season. According to USDA forecasts, beet sugar production is expected to decline by 6% in fiscal year 2026/27, while total US sugar output is projected to fall by 5% to 8.839 mln short tons, raw value.

Meanwhile, US farmers’ production costs are expected to remain elevated. Direct sugar beet production expenses are forecast at $1,230 per acre in 2027, approximately $20 higher than in 2026. Overhead costs could rise to $342 per acre from $336 a year earlier. High seed and fertilizer prices, machinery repair costs, land rents and depreciation expenses remain the main factors driving production costs.

A recovery in sugar prices amid tightening domestic supplies could provide some support to growers. After falling to 35 cents per pound in June 2025, spot prices for refined beet sugar in the US Midwest rose to 47.75 cents per pound in August 2026. Analysts expect prices could exceed 50 cents per pound in the fourth quarter. Meanwhile, USDA forecasts US sugar imports from Mexico to increase to 1.188 mln short tons, compared with 242 thsd short tons in the previous season.

Despite rising refined sugar prices, average payments to sugar beet growers in 2026/27 are likely to remain around $40 per ton. In the 2027/28 season, payments could increase to $45–49 per ton, which, together with a recovery in yields, would help significantly reduce losses. Under favorable conditions, farms that own their land and production quotas without additional rental costs could generate profits of around $60 per acre. However, average industry profitability is expected to remain negative.

Tags: USA, sugar beet