12/16/2005

Reynolds links to a post on Club for Growth about sugar subsidies. Well Reynolds won't link to me, but if the phony bastard bothered you would have seen this way back April of 04:

The government sent out 22 million farm subsidy checks just two years ago. Starting with sugar; cane sugar subsidized eighteen cents a pound and beet sugar at twenty-two cents a pound; the world price is between five and seven cents per pound.. The sugar subsidy cost you and me $1.4 billion per year in higher food costs. According to the GAO study, 33 sugar farmers have received more than $1 million each in government subsidies, with one Florida family receiving $65 million in one year alone. The GAO errs; the subsidies go to processors, not farmers. Farmers get zero.

Because the subsidies go directly to sugar processors and not the farmers there is a labyrinth of business and farming interests involved in keeping the sugar program in place. Growers are part owners of processing plants and so on.

ADM and Carghill, who are CORN processors, lead the charge for higher SUGAR subsidies. Corn processors? Sugar? Corn farmers and processors need higher sugar prices in order to force candy, soft drink, and other users of sweeteners to use expensive corn syrup, and the only way they can do this is if sugar costs more than sixteen cents a pound.

Get it? If domestic sugar costs more than sixteen cents a pound instead of the world price of seven cents a pound all the farmers and grain processors get to shove expensive corn syrup down the throats of all the soft drink and candy makers. As part of the subsidy no foreign sugar can be imported. This corn agribusiness interest is also behind the unnecessary corn created gasoline additive called ethanol. Ethanol costs us around two or three cents per gallon of gas. Corn subsidies are a part of the sugar deal. And it's deeper than that but you get where I could go here.
Note that the sugar FARMERS get zero of the subsidy, all go to the gadzillionaires who process it and the grain multi-nationals who process other stuff. Actually the Club for Growth piece is lightweight stuff, but that's what Reynolds thinks is good.

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