On my snapshot world, I built a sugar cane farm controlled with redstone. I got a bit suspicious when nothing went into the hoppers or the chest, but let it slide. Over and over the sugar cane would grow and get pushed by the pistons but not drop anything, so I switched to survival and tried breaking it by hand and it didn't drop anything. DOES NOT CRASH!!!
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No, it isn't. It doesn't crash, just the item doesn't drop.
I cannot reproduce this in 13w03a. Sugar canes are dropped when broken in survival, and when pushed with piston in both survival and creative.
Duplicate of MC-7622.