The U.S. Department of Agriculture secures loans for processors using sugar as collateral. This allows producers to simply forfeit their sugar rather than repay the loan. Therefore, it is in the USDA's interest to keep the price floor for sugar as high as possible to allow producers to profit. Otherwise processors will opt for forfeiture, leaving the USDA with unprocessed sugar. Unfortunately, for consumers, this means keeping the price for sugar well above the open market price.
Corporate welfare is also unconstitutional.
Our Founding Fathers envisioned a limited government. The Constitution was written to enumerate specific powers for a reason. Corporate subsidies are outside Congress s limited spending authority under the Constitution. Nowhere in this document does it grant Congress the authority to subsidize industry. As you may know, in 1997, I joined a coalition of members and citizens groups from across the political spectrum to target corporate welfare programs for elimination.