Sugar Growers May Share Ethanol Action - AP

[Eugene]

Source: Associated Press

Sugar Growers May Share Ethanol Action

Friday August 17, 2007 9:01 AM

By FREDERIC J. FROMMER

Associated Press Writer

WASHINGTON (AP) - Congress is hoping that an ethanol
industry with an endless appetite for corn will have a sweet
tooth too.

Under the farm bill the House passed last month, the federal
government would buy surplus sugar and sell it to ethanol
producers, where it would be used in a mixture with corn.
The program was inserted as a hedge against a looming North
American Free Trade Agreement provision, which will let Mexico
export unlimited amounts of sugar to the U.S. starting next
year.

The U.S. sugar program currently props up sugar prices through
a combination of price guarantees and import quotas. Once the
limit on Mexican imports expires, the government could be faced
with a price-depressing glut of sugar, which in turn could lead
to taxpayer-funded government purchases of surplus sugar.

-snip-

The sugar-to-ethanol program would only kick in when imports
lead to an oversupply of sugar in the U.S.

-snip-

The sugar-to-ethanol program is designed to save the cost of
government purchases of surplus sugar. But according to the
CBO, those savings would largely be offset by the cost of the
new program and the price guarantee increase.

-snip-

Read more: http://www.guardian.co.uk/uslatest/story/0,,-6856499,00.html

[thunder rising]

1. Sugar lobby more powerful than you think!

Ever wonder why the US is the only place on earth that has corn syrup based soft drinks? Cause the price of sugar is propped by by good old patronage, price guarantees, and quotas.

Why are the sugar growers a protected species?

Look at this:
government would buy surplus sugar

The U.S. sugar program currently props up sugar prices through a combination of price guarantees and import quotas.

The price of sugar should be reflected by the value of the world market (like everybody else has to live with) and yes indeed, moonshine fuel is a BIG spinoff.

These quotas and price guarantees for the sugar growers is one of the reasons we HAVE to have foreign oil.

[Nihil]

2. Surely this should be ...

... "Congress sweetener for sugar industry" ?

> Once the limit on Mexican imports expires, the government could be
> faced with a price-depressing glut of sugar, which in turn could
> lead to taxpayer-funded government purchases of surplus sugar.

Hope you don't interfere with the corn syrup industry subsidies though ...