Sugar Industry Getting a Sweet Deal From Uncle Sugar


The Wall Street Journal reports today that three giant sugar companies received more than half of all sugar loans in the past year. But there’s trouble brewing:

Disclosure of the loan recipients comes as domestic sugar prices are trading around four-year lows, raising concerns that some processors—who turn sugar cane or sugar beets into the sweetener—may not be able to repay what they owe.

….During the past nine years, the government has lent $8.8 billion to sugar processors. The 2012 loans were granted with an interest rate of 1.125% to 1.250%, depending on the month in which they were issued….In case of a default, a processor would pay the government back in sugar rather than cash; the sugar is then typically sold by the USDA at a loss.

I’ll bet college students wish they could get a deal like that. Instead they’ll soon be getting their loans at 6.8 percent—with no allowance whatsoever for default until the day they die, let alone the possibility of repaying the government in used textbooks or something. Let us all now take a moment to marvel at our national priorities.

FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2019 demands.

FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2019 demands.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

We have a new comment system! We are now using Coral, from Vox Media, for comments on all new articles. We'd love your feedback.