If you are only 0.2% of a sector in the economy but contribute a whopping 40% of the lobbying dollars spent by that sector, does that make your voice a little louder? Sugar is only 0.2% of the agricultural sector of the economy but produces 40% of the lobbying dollars. That is obviously the reason that something as unhealthy as sugar gets an annual subsidy of almost $3 billion in taxpayer dollars, and its competitors are subject to import quotas.
Nonetheless, the price of sugar has dropped to a three-year low of less than 11 cents per pound. In January, it was over 15 cents, indicating a price collapse. The good news is that Americans are turning away from sugar! For example, sparkling water sales are up $1.4 billion over the last five years, while sugar soda drinks sales dropped by $1.2 billion.
But, the bad news is that the amount of the subsidy paid by taxpayers to wealthy sugar growers will increase.
You can spike a punch bowl, you can even lace brownies, but do you really need to put sugar on children’s cereal?