Is This a Sweet Deal or What?

Let’s say you’re a sugar processor in 2013. First you take out a loan backed by the U.S. Dept. of Agriculture (USDA). You pledge your sugar as collateral. Next you default on your loan.

Thanks to The USDA’s Feedstock Flexibility Program Uncle Sam takes your sugar, credits you with a high price and sells it to ethanol producers at a price discounted by up to 90%.

The cost of this sweet boondoggle? About $280 million of your dollars in 2013.

How sweet is that?

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