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Food Aid and Agricultural Cargo Preference

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  • Elizabeth R. Bageant
  • Christopher B. Barrett
  • Erin C. Lentz

Abstract

This paper uses an unprecedentedly rich data set to estimate the cost of agricultural cargo preference (ACP) restrictions on United States food aid programs, and to document some of the programs' competitiveness and national security impacts. ACP cost U.S. taxpayers $140 million in 2006, 46% more than competitive freight costs would have. This roughly equals the cost of non-emergency food aid to Africa. Furthermore, 70% of ACP vessels did not satisfy the criteria that deem them militarily useful, a large share were ultimately owned by foreign corporations, and no ACP vessel crew has been mobilized for national service.

Suggested Citation

  • Elizabeth R. Bageant & Christopher B. Barrett & Erin C. Lentz, 2010. "Food Aid and Agricultural Cargo Preference," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(4), pages 624-641.
  • Handle: RePEc:oup:apecpp:v:32:y:2010:i:4:p:624-641.
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    Cited by:

    1. Lentz, Erin C. & Passarelli, Simone & Barrett, Christopher B., 2013. "The Timeliness and Cost-Effectiveness of the Local and Regional Procurement of Food Aid," World Development, Elsevier, vol. 49(C), pages 9-18.
    2. Li, Shanjun & Kahn, Matthew E. & Nickelsburg, Jerry, 2015. "Public transit bus procurement: The role of energy prices, regulation and federal subsidies," Journal of Urban Economics, Elsevier, vol. 87(C), pages 57-71.
    3. Gentilini, Ugo, 2014. "Our daily bread : what is the evidence on comparing cash versus food transfers?," Social Protection and Labor Policy and Technical Notes 89502, The World Bank.
    4. Lentz, Erin C. & Barrett, Christopher B., 2013. "The economics and nutritional impacts of food assistance policies and programs," Food Policy, Elsevier, vol. 42(C), pages 151-163.
    5. Kenneth Button, 2016. "The political economy of shipping US food and aid under the cargo preference regime," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 18(4), pages 353-370, December.
    6. Lentz, Erin C. & Barrett, Christopher B. & Gómez, Miguel I. & Maxwell, Daniel G., 2013. "On The Choice and Impacts of Innovative International Food Assistance Instruments," World Development, Elsevier, vol. 49(C), pages 1-8.

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