WASHINGTON, D.C. – Yesterday, the U.S. Department of Agriculture announced that it sold another 136 thousand tons of sugar to ethanol producers, costing over $53 million taxpayer dollars in order to keep sugar prices from falling. “Today we wake up and learn that the government has shut down due to budgetary disagreements, yet the USDA was able to squeak out one more bonus to sugar growers before the shutdown occurred,” said Robb MacKie, ABA President and CEO. “This is a clear sign of misguided priorities on the part of Members of Congress who had a chance to save millions in taxpayer dollars.”
“The U.S. government has now spent over $141 million taxpayer dollars since July to support this so-called ‘no cost’ program,” said Cory Martin, ABA Director of Government Relations. “It turns out that grower claims of there not being any cost are completely untrue. Add to it that growers already receive the benefits of a $3.5 billion a year hidden food tax, now they’re forcing the USDA to take their sugar as collateral for millions in loans and resell this sugar at a massive loss. It’s mind boggling to see just how much the sugar lobby has been able to get away with – there is no other program like it on the books today.”
“Members of Congress will have yet another opportunity to reform this arcane program in the coming weeks,” added Mr. MacKie. “It is our hope that Congress will now be able to see the program for what it really is and adopt modest reforms that will help restore some fairness to everyone participating in the sugar market.”
About the American Bakers Association:
The American Bakers Association (ABA) is the Washington D.C.-based voice of the wholesale baking industry. Since 1897, ABA has represented the interests of bakers before the U.S. Congress, federal agencies, and international regulatory authorities. ABA advocates on behalf of more than 700 baking facilities and baking company suppliers. ABA members produce bread, rolls, crackers, bagels, sweet goods, tortillas and many other wholesome, nutritious, baked products for America’s families. The baking industry generates more than $102 billion in economic activity annually and employs more than 633,000 highly skilled people.
Source: American Bakers Association