The Hill News

As couples across Indiana, and across the country, celebrate Valentine’s Day this week by presenting chocolates, candies, and other sweets to their sweethearts, we are reminded once again of the sour affect that the U.S. sugar program has on businesses and consumers.

The federal government’s sugar support program is a complicated system of marketing allotments, price supports, purchase guarantees, quotas, and tariffs. This Depression-era program actually raises the price of sugar paid by U.S. manufacturers and consumers, reducing domestic food production, employment in confectionery businesses, and opportunities for U.S. exports.
 
In sugar land, prices are set by the government, not the market. Each year, the U.S. Department of Agriculture determines “marketing allotments” to assure domestic producers at least 85 percent of the domestic sugar market. The government also limits imports, to help keep prices inflated far above world levels. I! f U.S. sugar prices fall below the official level, a price-support system of “loans” to processors ensures that 'Big Sugar' gets its federal share. The recipients get their loans in taxpayer dollars, but can repay them in (what else?) sugar.

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