Big sugar leaves a bitter aftertaste: it's time to end the sugar industry's corrupt sweetheart deals.

AuthorBeato, Greg
PositionGuaranteed minimum price

TAKING CANDY from a baby is easy. Taking sugar from a senator? Not so much. For decades, economists, free market think tanks, good-government advocates, newspaper columnists, and even the occasional elected official have decried the special treatment enjoyed by the American sugar industry.

Under current policies, U.S. sugarcane and sugar beet farmers receive minimum price guarantees regardless of market conditions. In addition, the federal government allots 85 percent of the U.S. sugar market to domestic producers, and it imposes quotas and tariffs on the 40 countries that are allowed to export sugar to America.

In 1993, the Government Accounting Office (GAO) estimated that such policies were costing U.S. consumers $1.4 billion a year because they resulted in "higher prices for domestic sugar." Twenty years later, the University of Michigan-Flint economist Mark J. Perry estimated that this annual cost had grown to $3 billion by 2012, and that consumers and U.S. sugar-using businesses had paid "more than twice the world price of sugar on average since 1982."

In other words, sugar producers are getting a sweet deal, while consumers are getting screwed.

Alas, it's not just the nation's 3,913 sugar beet farms and 666 sugarcane farms that crave the sugar program's artificially sweetened revenues. The program also persists because it offers a steady source of money to elected officials.

In a June 2014 report, Bryan Riley, a senior policy analyst at the Heritage Foundation, noted that while sugar constitutes just 2 percent of the total value of U.S. crop production, the nation's sugar farmers account for 35 percent of the crop industry's total campaign contributions and 40 percent of its lobbying expenditures.

Over the years, major sugar companies such as American Crystal Sugar and Florida Crystals have donated millions of dollars to individual candidates and political action committees. According to OpenSecrets.org, the industry as a whole has donated $41.7 million since 1990. Traditionally it has contributed more to Democrats than Republicans, but in the 2012 election cycle it split its contributions 50/50.

The industry's aggressive lobbying gets results. In 2008, for example, the U.S. sugar trade got somewhat less regulated, when provisions that were drafted as part of the 1994 North American Free Trade Agreement finally kicked in and gave Mexican producers the ability to import unlimited amounts of duty-free sugar to the U.S. In March 2014...

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