The Cost of the U.S. Sugar Program Revisited

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The Cost of the U.S. Sugar Program Revisited

Author Info

John C. Beghin
Barbara El Osta
Jay R. Cherlow
Samarendu Mohanty

Additional information is available for the following registered author(s):

John Christopher Beghin

Abstract

The article analyzes the welfare cost of the U.S. sugar program using a multimarket model of U.S. sweetener markets. The latter includes raw crops, sugar extraction and refining, and sweetener users (food-processing industries and final consumers). The authors address the industrial organization of food industries using sweeteners and treat the United States as a large importer. With the removal of the program, this article estimates (all figures in 1999 dollars) that in 1998 cane growers, sugar beet growers, and processors would have lost $307, $650, and $89 million, respectively; sweetener users would have gained $1.9 billion. World prices would have increased by 13.2%. The deadweight loss of the program is estimated at $532 million. Copyright 2003, Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Contemporary Economic Policy.

Volume (Year): 21 (2003)
Issue (Month): 1 (January)
Pages: 106-116
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Handle: RePEc:oup:coecpo:v:21:y:2003:i:1:p:106-116

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David Abler & John C. Beghin & David Blandford & Amani Elobeid, 2006. "U.S. Sugar Policy Options and Their Consequences under NAFTA and Doha," Center for Agricultural and Rural Development (CARD) Publications 06-wp424, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
Other versions:
- David Abler & John C. Beghin & David Blandford & Amani Elobeid, 2006. "U.S. Sugar Policy Options and Their Consequences under NAFTA and Doha," Food and Agricultural Policy Research Institute (FAPRI) Publications 06-wp424, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
- Abler, David & Beghin, John C. & Blandford, David & Elobeid, Amani, 2006. "U.S. Sugar Policy Options and Their Consequences under NAFTA and Doha," Staff General Research Papers 12643, Iowa State University, Department of Economics. [Downloadable!]
Amani Elobeid & John C. Beghin, 2005. "Multilateral Trade and Agricultural Policy Reforms in Sugar Markets," Food and Agricultural Policy Research Institute (FAPRI) Publications 04-wp356, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
Other versions:
- Elobeid, Amani & Beghin, John C., 2004. "Multilateral Trade and Agricultural Policy Reforms in Sugar Markets," Staff General Research Papers 11539, Iowa State University, Department of Economics. [Downloadable!]
- Amani Elobeid & John C. Beghin, 2005. "Multilateral Trade and Agricultural Policy Reforms in Sugar Markets," Center for Agricultural and Rural Development (CARD) Publications 04-wp356, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
- Amani Elobeid & John Beghin, 2006. "Multilateral Trade and Agricultural Policy Reforms in Sugar Markets," Journal of Agricultural Economics, Blackwell Publishing, vol. 57(1), pages 23-48, 03. [Downloadable!] (restricted)
John C. Beghin & Helen H. Jensen, 2008. "Farm Policies and Added Sugars in US Diets," Food and Agricultural Policy Research Institute (FAPRI) Publications 08-wp462, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
Other versions:
- Beghin, John C. & Jensen, Helen H., 2008. "Farm Policies and Added Sugars in US Diets," Staff General Research Papers 12872, Iowa State University, Department of Economics. [Downloadable!]
- John C. Beghin & Helen H. Jensen, 2008. "Farm Policies and Added Sugars in US Diets," Center for Agricultural and Rural Development (CARD) Publications 08-wp462, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
Cheng Fang & John C. Beghin, 2000. "Urban Demand for Edible Oils and Fats in China: Evidence from Household Survey Data," Center for Agricultural and Rural Development (CARD) Publications 00-wp245, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
Other versions:
- Fang, Cheng & Beghin, John C., 2000. "Urban Demand for Edible Oils and Fats in China: Evidence from Household Survey Data," Staff General Research Papers 1863, Iowa State University, Department of Economics. [Downloadable!]
- Cheng Fang & John C. Beghin, 2000. "Urban Demand for Edible Oils and Fats in China: Evidence from Household Survey Data," Food and Agricultural Policy Research Institute (FAPRI) Publications 00-wp245, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
- Fang, Cheng & Beghin, John C., 2002. "Urban Demand for Edible Oils and Fats in China: Evidence from Household Survey Data," Journal of Comparative Economics, Elsevier, vol. 30(4), pages 732-753, December. [Downloadable!] (restricted)
Benjamin Bridgman & Shi Qi & James A. Schmitz, Jr., 2007. "Does regulation reduce productivity? Evidence from regulation of the U.S. beet-sugar manufacturing industry during the Sugar Acts, 1934-74," Staff Report 389, Federal Reserve Bank of Minneapolis. [Downloadable!]
Other versions:
- Benjamin Bridgman & Shi Qi & James Schmitz, 2006. "Does Regulation Reduce Productivity? Evidence From Regulation of the U.S. Beet-Sugar Manufacturing Industry During the Sugar Acts, 1934-74," 2006 Meeting Papers 438, Society for Economic Dynamics.
Patrick C. Westhoff & Jacinto F. Fabiosa & John C. Beghin & William H. Meyers, 2004. "Challenges in Modeling the Effects of Trade Agreements on the Agricultural Sector," Center for Agricultural and Rural Development (CARD) Publications 04-wp358, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
Other versions:
- Westhoff, Patrick C. & Fabiosa, Jacinto F. & Beghin, John C. & Meyers, William H., 2004. "Challenges in Modeling the Effects of Trade Agreements on the Agricultural Sector," Staff General Research Papers 11673, Iowa State University, Department of Economics. [Downloadable!]
- Patrick C. Westhoff & Jacinto F. Fabiosa & John C. Beghin & William H. Meyers, 2004. "Challenges in Modeling the Effects of Trade Agreements on the Agricultural Sector," Food and Agricultural Policy Research Institute (FAPRI) Publications 04-wp358, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
- Patrick Westhoff & Jacinto Fabiosa & John Beghin & William Meyers, 2004. "Challenges in Modeling the Effects of Trade Agreements on the Agricultural Sector," Journal of Agricultural & Applied Economics, Southern Agricultural Economics Association, vol. 36(2), pages 383-393, August.
Elobeid, Amani & Beghin, John C., 2005. "Multilateral Trade and Agricultural Policy Reforms in Sugar Markets (Revised)," Staff General Research Papers 12419, Iowa State University, Department of Economics. [Downloadable!]

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