Senate Bill Amendment Targets USDA Sugar Purchases
By Amanda Brodhagen, Farms.com
An amendment to the Senate bill would require the U.S. Department of Agriculture (USDA) to purchase sugar to keep prices high enough so that agricultural sugar producers don’t default on government loans.
Prices have fallen 18 per cent over the last couple of months after a bumper crop of sugar beets and cane. The government loans are worth $862 million.
Prior to the amendment, the USDA was considering buying 400,000 tons of sugar that would then be sold to U.S. ethanol plants, at an estimated cost of $80 million.
The amendment calls for cutting funding of surplus sugar purchases by the federal government.
The amendment was submitted by Senator Jeanne Shaheen (D., N.H.), and was co-sponsored by Sens. John McCain (R., Ariz.), Pat Toomey (R., Pa.), Mark Kirk (R. Ill.) and Kelly Ayotte (R., N.H.).
The amendment may be put to a vote and attached to the Democratic budget.