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

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

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.

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Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 18 (1993)
Issue (Month): 01 (July)

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Handle: RePEc:ags:jlaare:30813
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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 10613, Iowa State University, Department of Economics.
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