Tuesday, March 26, 2013

Big Sugar’s Uncle Sugar Daddy

Big Sugar, Big Hogs--

Carl Hiaasen: Big Sugar’s subsidy — how sweet it is - Carl Hiaasen - MiamiHerald.com: " . . . According to the Wall Street Journal, the USDA is on the verge of purchasing 400,000 tons of sugar in a massive bailout of domestic sugar processors. The move would cost taxpayers about $80 million. It’s the sweetest of deals for the big companies that grow cane and beets. For years the government has guaranteed an artificially high price for American sugar, undercutting foreign competitors and inflating consumer prices for everything from soft drinks to breakfast cereal. Last year, sugar processors under the price-support program borrowed $862 million from the USDA. The loans were secured with about 2 million tons of sugar that was expected to be harvested. And the harvest was very good. Too good, apparently. . . . The transaction would result in Uncle Sam losing 10 cents on every pound of sugar sold, which adds up to an $80 million hit on 400,000 tons of product. What a brilliant system. . . . " Read more here: http://www.miamiherald.com/2013/03/23/3301344/big-sugars-subsidy-how-sweet-it.html#storylink=cpy


No comments: