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Farm policies and added sugars in US diets

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Author Info
Beghin, John C.
Jensen, Helen H.

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Abstract

We examine how US farm policies for sweetener crops have affected the consumption and composition of sweeteners in the US diet. R&D expenditures have lowered the unit cost of commodities used in sweeteners, but have generated more technical progress in corn than in sugar crops, increasing use of corn in food production, ceteris paribus. Commodity programs have raised the price of sugar and decreased the price of corn. Thus, high fructose corn syrup (HFCS) became an inexpensive substitute for sugar in food from 1970 on. However, the effect of policy on ingredient prices has become less important over time. Today the farm value share in sweetened food is below 5% and HFCS is a specialized input in many food items, with limited substitution possibilities. The current link between US sweetener consumption and farm policy is weak. Recent evidence from other high-income countries shows little relationship between sweetener consumption and sugar policies.

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Publisher Info
Article provided by Elsevier in its journal Food Policy.

Volume (Year): 33 (2008)
Issue (Month): 6 (December)
Pages: 480-488
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Handle: RePEc:eee:jfpoli:v:33:y:2008:i:6:p:480-488

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Web page: http://www.elsevier.com/locate/foodpol

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Related research
Keywords: Q18 D12 I18 Farm policies Diet Sugar Sweetener Agricultural policy Subsidy Corn HFCS Fructose;

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References listed on IDEAS
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  1. Huffman, Wallace & Huffman, Sonya K. & Rickertsen, Kyrre & Tegene, Abebayehu, 2006. "Over-Nutrition and Changing Health Status in High Income Countries - Revised 02/28/08," Staff General Research Papers 12604, Iowa State University, Department of Economics. [Downloadable!]
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  3. Julian M. Alston & Daniel A. Sumner & Stephen A. Vosti, 2006. "Are Agricultural Policies Making Us Fat? Likely Links between Agricultural Policies and Human Nutrition and Obesity, and Their Policy Implications," Review of Agricultural Economics, American Agricultural Economics Association, vol. 28(3), pages 313-322, 09. [Downloadable!] (restricted)
    Other versions:
  4. Zvi Griliches, 1992. "The Search for R&D Spillovers," NBER Working Papers 3768, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. David Cutler & Edward Glaeser & Jesse Shapiro, 2003. "Why Have Americans Become More Obese?," NBER Working Papers 9446, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. John C. Beghin & Barbara El Osta & Jay R. Cherlow & Samarendu Mohanty, 2003. "The Cost Of The U.S. Sugar Program Revisited," Contemporary Economic Policy, Western Economic Association International, vol. 21(1), pages 106-116, 01. [Downloadable!] (restricted)
  7. Miljkovic, Dragan & Nganje, William & de Chastenet, Helene, 2008. "Economic factors affecting the increase in obesity in the United States: Differential response to price," Food Policy, Elsevier, vol. 33(1), pages 48-60, February. [Downloadable!] (restricted)
  8. Reed, A.J. & Elitzak, Howard & Wohlgenant, M.K., 2002. "Retail-Farm Price Margins And Consumer Product Diversity," Technical Bulletins 33573, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  9. Wallace E. Huffman & Robert E. Evenson, 2006. "Do Formula or Competitive Grant Funds Have Greater Impacts on State Agricultural Productivity?," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 88(4), pages 783-798, November. [Downloadable!] (restricted)
  10. Maria L. Loureiro & Rodolfo M. Nayga, 2005. "International Dimensions of Obesity and Overweight Related Problems: An Economics Perspective," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 87(5), pages 1147-1153, November. [Downloadable!] (restricted)
  11. Abler, D. & Beghin, John C. & Blandford, D. & Elobeid, Amani, 2007. "Changing the U.S. Sugar Program into a Standard Crop Program: Consequences under NAFTA and Doha," Staff General Research Papers 12764, Iowa State University, Department of Economics. [Downloadable!]
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