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Sugar: Background for 1995 Farm Legislation

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  • Lord, Ron

Abstract

This report address considerations in the 1995 farm bill debate for sugar, including market conditions, policy proposals, trade agreements, and the interactions between policy and markets for selected commodities. Current U.S. sugar price support programs have their origin in 1981 legislation. The price support program has resulted in significant expansion of the industry in the last decade. Beet sugar production has expanded in many regions, but has contracted in some western regions, particularly California. Cane sugar production has expanded in Florida, Louisiana, and Texas, but has shrunk in Hawaii where costs are high. National average costs of producing beet and cane sugar have been declining in the last decade, and returns have exceeded costs. Average production costs of refined beet sugar are below those of refined cane sugar. Overall sugar demand has been growing at about 2 percent a year since 1986, when the rapid replacement of sugar by high-fructose corn syrup ended. Sugar imports under quota have fallen to levels close to the minimum provided by law. Prospects are for sugar production and consumption to continue to rise. No major impacts on the industry are expected from the GATT Uruguay Round or NAFTA.

Suggested Citation

  • Lord, Ron, 1995. "Sugar: Background for 1995 Farm Legislation," Agricultural Economic Reports 262017, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uerser:262017
    DOI: 10.22004/ag.econ.262017
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    Citations

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    Cited by:

    1. Mitchell, Donald, 2004. "Sugar policies opportunity for change," Policy Research Working Paper Series 3222, The World Bank.
    2. Dramani, Latif A. Guy & Laye, Oumy, 2006. "Monetary Union and Bilateral Intra Zone Trade Impact: Structural VAR Approach in CFA Zone," Conference papers 331470, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Evans, Edward A. & Ward, Ronald W. & Davis, Carlton George, 2001. "Time Varying Parameters In The Demand For High Fructose Corn Syrup," 2001 Annual meeting, August 5-8, Chicago, IL 20541, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Schmitz, Andrew, 1995. "Sugar: The Free Trade Myth and the Reality of European Subsidies," International Working Paper Series 237436, University of Florida, Food and Resource Economics Department.
    5. Ashley Winston, 2005. "The Theory of Tariff Rate Quotas: An Application to the U.S. Sugar program using MONASH-USA," Centre of Policy Studies/IMPACT Centre Working Papers ip-83, Victoria University, Centre of Policy Studies/IMPACT Centre.
    6. Castellanos, Lazaro Peno & Alvarez, Jose, 1997. "The Processing Sector of the Sugar Industries of Cuba and Florida," International Working Paper Series 239269, University of Florida, Food and Resource Economics Department.

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