This figure is five times what the President requested. This expensive subsidy to the western livestock industry continues despite the fact that is has been proven ineffective. These policies distort the market and inflate peanut prices. While the 1996 Farm Bill finally ended direct taxpayer outlays for the program, we now pay those costs at the supermarket in higher prices. The loans give the government no method of recourse by which to retrieve their money.
Processors can simply forfeit their sugar rather than repay the loan.
Sugar processors receive more than the market value of their product and when they don't pay up, their unpaid loans leave federal taxpayers holding the bag. TCS is dedicated to cutting wasteful spending and subsidies in order to achieve a responsible and efficient government that lives within its means.