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Do Corn Farmers Have Too Much Faith In The Sugar Program?

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  • Rendleman, C. Matthew
  • Hertel, Thomas W.

Abstract

Corn producers frequently have been told that the sugar program provides an important stimulus to corn demand through its positive influence on the high fructose corn syrup sector. In this article we qualify the extent of this support and find it to be very small- not more than 3 cents per bushel, and probably less. Previous studies have overstated this effect due a lack of attention to the interindustry linkages in the sweetener complex.

Suggested Citation

  • Rendleman, C. Matthew & Hertel, Thomas W., 1993. "Do Corn Farmers Have Too Much Faith In The Sugar Program?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(01), July.
  • Handle: RePEc:ags:jlaare:30813
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    File URL: http://purl.umn.edu/30813
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    References listed on IDEAS

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    1. Babcock, Bruce A. & Schmitz, A., 1986. "Look for the Hidden Costs: Why Direct Subsidy Can Cost US Less (And Benefit US More) Than a 'No Cost' Trade Barrier," Staff General Research Papers Archive 10613, Iowa State University, Department of Economics.
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    Cited by:

    1. Mohanty, Samarendu & Beghin, John C. & Kaus, Phillip J., 2001. "Impacts Of Federal Support Programs For Sugar And Peanuts Compared To Corn And Wheat On U.S. And World Markets," 2001 Annual meeting, August 5-8, Chicago, IL 20610, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. John C. Beghin & Barbara El Osta & Jay R. Cherlow & Samarendu Mohanty, 2001. "Cost of the U.S. Sugar Program Revisited, The," Center for Agricultural and Rural Development (CARD) Publications 01-wp273, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. Thaeripour, Farzad & Hertel, Thomas W. & Tyner, Wallace E. & Beckman, Jayson F. & Birur, Dileep K., 2008. "Biofuels and their By-Products: Global Economic and Environmental Implications," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6452, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. 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, January.
    5. Lee, Dae-Seob & Kennedy, P. Lynn, 2005. "Demand behavior of U.S. high fructose corn syrup (HFCS) and its implication for the U.S. sweetener market: a cointegration analysis," 2005 Annual meeting, July 24-27, Providence, RI 19564, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Pruitt, J. Ross & Tilley, Daniel S., 2008. "Location Patterns of Confectionery Manufacturers in a Post NAFTA Environment," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6802, Southern Agricultural Economics Association.

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