“Sweet” Farm Bill

How do they come up with this stuff (source)?

New sugar program: The bill would make the government buy sugar for 2X the world price, store it, then resell it at about an 80% loss to the taxpayer. Sugar sells for about 11¢/lb on the world market. The US government would have to buy sugar for about 22¢/lb, store it, and then auction off the excess to ethanol plants. We estimate that such an auction would net the government about 4¢/lb. In addition, this new provision would require the government to guarantee that domestic sugar producers get 85 percent of the domestic sugar market.

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One Response to “Sweet” Farm Bill

  1. effay says:

    The toying with the sugar market has been going on forever. That’s why every soft drink on in America contains the omnipresent high fructose corn syrup instead of sugar.

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