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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(1), pages 1-10, July.
    • Handle: RePEc:ags:jlaare:30813
    DOI: 10.22004/ag.econ.30813
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    References listed on IDEAS

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    1. Babcock, Bruce A. & Schmitz, Andrew, 1986. "Look for Hidden Costs: Why Direct Subsidy Can Cost Us Less (And Benefit Us More) Than A "No Cost" Trade Barrier," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 1(4), pages 1-4.
    2. Hanson, Kenneth A. & Robinson, Sherman, 1989. "Data, Linkages, And Models: U.S. National Income And Product Accounts In The Framework Of A Social Accounting Matrix," Staff Reports 278155, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Taheripour, Farzad & Hertel, Thomas W. & Tyner, Wallace E. & Beckman, Jayson F. & Birur, Dileep K., 2008. "Biofuels and their By-Products: Global Economic and Environmental Implications," Conference papers 331685, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. 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).
    3. JESPER JENSEN & Thomas F. Rutherford & David G. Tarr, 2014. "Modeling Services Liberalization: The Case of Tanzania," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 9, pages 191-222, World Scientific Publishing Co. Pte. Ltd..
    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. 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).
    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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