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Farm Policies and Added Sugars in US Diets

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Author Info
John C. Beghin
Helen H. Jensen () (Center for Agricultural and Rural Development (CARD), Midwest Agribusiness Trade Research and Information Center (MATRIC))

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Abstract

Major changes in the use of US sweeteners have occurred since 1970, in both the amount and composition. Increased consumption of caloric sweeteners, especially in beverages, has been linked to excess energy intake and lower-quality diets. We examine how US farm policies (specifically agricultural research and development [R&D] expenditures and commodity programs) have affected the consumption and composition of sweeteners in the US diet. R&D expenditures have lowered the unit cost of most commodities and increased their use in food production, ceteris paribus, although corn has benefited more than sugar crops in the technical progress. Commodity programs have raised the price of sugar and decreased the price of corn; high fructose corn syrup (HFCS) became an inexpensive substitute for sugar in food beginning in 1970. However, the effect of this change in the price of ingredients has become less important over time. Today the farm value share in sweetened food is very small (below 5%), and HFCS has become a specialized input in many food items. Countries with different or no commodity programs experience similar increases in consumption of added sugar. We conclude that the current link between the US consumption of caloric sweeteners and farm policy is tenuous, although historically the link was stronger.

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Publisher Info
Paper provided by Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University in its series Food and Agricultural Policy Research Institute (FAPRI) Publications with number 08-wp462.

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Date of creation: Feb 2008
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Handle: RePEc:ias:fpaper:08-wp462

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Related research
Keywords: added sugar; agricultural policy; caloric; corn; diet; farm policies; HFCS; subsidy; sugar; sweetener. JEL codes: Q18; D12; I18;

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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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  4. Zvi Griliches, 1992. "The Search for R&D Spillovers," NBER Working Papers 3768, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  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)
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  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)
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  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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