Feb. 1 letter writer Jon C. McKenzie correctly suggested that sugar cane is a far more efficient source for ethanol than corn. But we can't use sugar for ethanol in the United States because Congress maintains a massive sugar subsidy program that keeps the price of sugar here roughly double the world price, too expensive for ethanol production. And similar political favoritism prevents us from importing ethanol (or sugar to make it) from Brazil. We impose a 54-cents-per-gallon tariff on sugar ethanol and strictly limit sugar imports. Consumers and taxpayers pick up the tab, and multimillion-dollar agribusinesses reap the benefits....
Sweet Land of Subsidy
Feb. 1 letter writer Jon C. McKenzie correctly suggested that sugar cane is a far more efficient source for ethanol than corn. But we can't use sugar for ethanol in the United States because Congress maintains a massive sugar subsidy program that keeps the price of sugar here roughly double the world price, too expensive for ethanol production. And similar political favoritism prevents us from importing ethanol (or sugar to make it) from Brazil. We impose a 54-cents-per-gallon tariff on sugar ethanol and strictly limit sugar imports. Consumers and taxpayers pick up the tab, and multimillion-dollar agribusinesses reap the benefits....