U.S. sugar producers are poised to get a sweet deal

U.S. sugar producers are poised to get a sweet deal. The USDA is considering buying 400,000 tons of sugar in an aim to limit supply and boost prices so that sugar producers can pay back government loans that they’re in danger of defaulting on, the Wall Street Journal reports. The move would be an exercise of an untested provision inserted in the 2008 farm bill called the Feedstock Flexibility Program, which allows the USDA to intervene in the market to raise prices. While the artificial price boost would benefit companies that manufacture sugar, the losers may be the makers of your favorite candies -- like Mars, Hershey and Nestle -- and that may mean higher candy prices. The sugar industry has long benefitted from controversial government subsidies, and it doesn't appear that will change anytime soon: The Senate voted down an amendment just last June that would have slowly stripped the sector of federal government aid, according to Businessweek. Though it’s not uncommon for the government to prop up certain commodities, the sugar subsidy functions differently than most. Instead of sending money to farmers to elevate prices -- like in the case of corn, wheat and rice -- the sugar program limits imports...more

I'm sure you noticed this:

The USDA is considering buying 400,000 tons of sugar in an aim to limit supply and boost prices so that sugar producers can pay back government loans that they’re in danger of defaulting on...

The DC Deep Thinkers have a loan program for sugar producers, which increases the supply, which lowers prices, resulting in the producers defaulting on the gov't loan.

Now who should bear the burden for this stupid program...the producers, or the dummies who thought it up?  I would say both.  But oh no, your buddies in the gov't have decided you should pay, through artificially inflated prices for consumer goods.  The feds are here to help you don'tcha know.