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Food Aid and Agricultural Cargo Preference

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  • Elizabeth R. Bageant
  • Christopher B. Barrett
  • Erin C. Lentz

Abstract

This paper uses an unprecedentedly rich data set to estimate the cost of agricultural cargo preference (ACP) restrictions on United States food aid programs, and to document some of the programs' competitiveness and national security impacts. ACP cost U.S. taxpayers $140 million in 2006, 46% more than competitive freight costs would have. This roughly equals the cost of non-emergency food aid to Africa. Furthermore, 70% of ACP vessels did not satisfy the criteria that deem them militarily useful, a large share were ultimately owned by foreign corporations, and no ACP vessel crew has been mobilized for national service.

Suggested Citation

  • Elizabeth R. Bageant & Christopher B. Barrett & Erin C. Lentz, 2010. "Food Aid and Agricultural Cargo Preference," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(4), pages 624-641.
    • Handle: RePEc:oup:apecpp:v:32:y:2010:i:4:p:624-641.
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    File URL: http://hdl.handle.net/10.1093/aepp/ppq024
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    Cited by:

    1. Lentz, Erin C. & Passarelli, Simone & Barrett, Christopher B., 2013. "The Timeliness and Cost-Effectiveness of the Local and Regional Procurement of Food Aid," World Development, Elsevier, vol. 49(C), pages 9-18.
    2. Ryan Cardwell & Pascal L. Ghazalian, 2020. "The Effects of Untying International Food Assistance: The Case of Canada," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1056-1078, August.
    3. Li, Shanjun & Kahn, Matthew E. & Nickelsburg, Jerry, 2015. "Public transit bus procurement: The role of energy prices, regulation and federal subsidies," Journal of Urban Economics, Elsevier, vol. 87(C), pages 57-71.
    4. Alex Nikulkov & Christopher B Barrett & Andrew G Mude & Lawrence M Wein, 2016. "Assessing the Impact of U.S. Food Assistance Delivery Policies on Child Mortality in Northern Kenya," PLOS ONE, Public Library of Science, vol. 11(12), pages 1-15, December.
    5. Gentilini, Ugo, 2014. "Our daily bread : what is the evidence on comparing cash versus food transfers?," Social Protection Discussion Papers and Notes 89502, The World Bank.
    6. Stephanie Mercier & Vincent Smith, 2020. "Cargo Preference and U.S. International Food Aid Programs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 759-776, December.
    7. Brian Wetzstein & Raymond Florax & Kenneth Foster & James Binkley, 2019. "Rejuvenating Mississippi River's Post‐Harvest Shipping," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(4), pages 723-741, December.
    8. Lentz, Erin C. & Barrett, Christopher B., 2013. "The economics and nutritional impacts of food assistance policies and programs," Food Policy, Elsevier, vol. 42(C), pages 151-163.
    9. Kenneth Button, 2016. "The political economy of shipping US food and aid under the cargo preference regime," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 18(4), pages 353-370, December.
    10. Guy Jackson, 2020. "The influence of emergency food aid on the causal disaster vulnerability of Indigenous food systems," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 37(3), pages 761-777, September.
    11. Lentz, Erin C. & Barrett, Christopher B. & Gómez, Miguel I. & Maxwell, Daniel G., 2013. "On The Choice and Impacts of Innovative International Food Assistance Instruments," World Development, Elsevier, vol. 49(C), pages 1-8.

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