LA Times: Sugar Subsidies Fatten the Rich
|December 5, 2013||Posted by Staff under Editorials|
Federal efforts to protect growers of sugar beets and sugar cane epitomize everything that’s wrong with U.S. farm programs. At times they’ve artificially raised the price of sugar, costing consumers billions of dollars; at other times they’ve stuck taxpayers with the bill for the surplus sugar production they’ve promoted.
Sweeteners are ubiquitous in processed foods, and sugar is the most popular by far. There are two primary sources in the United States: sugar beets and sugar cane, which is grown only in Hawaii, Texas, Louisiana, and Florida.
Like the rest of the agriculture industry, beet and cane growers enjoy considerable protection from the federal government that’s not contingent on their incomes. But while other farmers are typically offered subsidized crop insurance (taxpayers cover roughly 60% of the cost) and guarantees against steep reductions in revenue, beet and cane farmers are also protected by import and production quotas that limit supply, deter competition, and inflate prices.
When unusually big harvests in the United States and Mexico (which faces no import quota on its subsidized products) push sugar prices below the target set by Washington, growers unload surplus sugar onto the federal government in lieu of repaying their federal loans, forcing Washington to sell the sweetener below cost to ethanol producers. Both of those things are happening this year.
U.S. farm program benefits flow overwhelmingly to the largest — and, consequently, most durable — agribusinesses; 10% of the farm operations collect 60% of the $23.5 billion in annual farm subsidies.
Sugar growers gave more than $4 million to members of Congress in the 2012 campaign. The largest buyers of sugar — bakers and confectioners — contributed about $250,000.
The unusually high farm profits in recent years have given Congress a golden opportunity to try to wean agribusiness from sugar subsidies and other market-distorting protections.
Ed. Notes: The politicians giving public money to the well-connected who don’t need it may seem wrong, but it is the role of government, and has been forever. Trying to reduce the subsidies or redirect them to the “right” recipients has never succeeded. What’s needed is a total overhaul, a transformation of government, a paradigm shift in how we see ourselves and our rulers. We need to see ourselves as worthy of spending our money, thank you very much.
That is, we’d each get a share of the common wealth, of surplus public revenue. With this extra income, farmers would not need any other public assistance. Their share would go further in the countryside where the cost of living is much lower. And they could adopt the strategy of selling directly to consumers, cutting out the middleman — those are the corporations who make the most off of a family’s food budget, not the farmer, and certainly not the lowly farmworker.
So say “no” to all subsidies, abolish them, root out the very concept of bribing politicians and winning handouts as a decent way of conducting business. Replace all that papered-over dishonesty with the share-Earth ethic in which each member of society gets a fair share of Earth’s worth — saving billions in pubic subsidies.