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The Impact of the U.S. Sugar Program Redux

  • Beghin, John C.
  • Elobeid, Amani

We analyze the various welfare costs, transfers, trade, and employment consequences of the current U.S. sugar program for U.S. consumers, other sugar-users, sugar refiners, cane and beet growing and processing industries, other associated agricultural sectors, and world markets. The removal of the sugar program would increase U.S. consumers’ welfare by $2.9 to $3.5 billion each year and generate a modest job creation of 17,000 to 20,000 new jobs in food manufacturing and related industries. Imports of sugar containing products would fall dramatically especially confectioneries substituting for domestic inputs under the sugar program. Sugar imports would rise substantially to 5 to 6 million short tons raw sugar equivalent. World price increases would be minor, equivalent to about 1 cent per pound.

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 36172.

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Date of creation: 06 May 2013
Date of revision:
Publication status: Published in Applied Economic Perspectives and Policy, March 2015, vol. 37 no. 1, pp. 1-33
Handle: RePEc:isu:genres:36172
Contact details of provider: Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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  1. Amani Elobeid & John C. Beghin, 2005. "Multilateral Trade and Agricultural Policy Reforms in Sugar Markets," Food and Agricultural Policy Research Institute (FAPRI) Publications 04-wp356, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  2. 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, 01.
  3. Larson, Donald F. & Borrell, Brent, 2001. "Sugar policy and reform," Policy Research Working Paper Series 2602, The World Bank.
  4. John C. Beghin & Jean-Christophe Bureau & Sophie Drogué, 2003. "Calibration of Incomplete Demand Systems in Quantitative Analysis, The," Center for Agricultural and Rural Development (CARD) Publications 03-wp324, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  5. Aksoy, M. Ataman & Beghin, John C., 2005. "Global Agricultural Trade and Developing Countries," Staff General Research Papers 12228, Iowa State University, Department of Economics.
  6. Miao, Zhen & Beghin, John C. & Jensen, Helen H., 2010. "Taxing Sweets: Sweetener Input Tax or Final Consumption Tax?," Staff General Research Papers 31969, Iowa State University, Department of Economics.
  7. David Abler & John C. Beghin & David Blandford & Amani Elobeid, 2008. "Changing the U.S. Sugar Program into a Standard Crop Program: Consequences under the North American Free Trade Agreement and Doha," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(1), pages 82-102.
  8. Anonymous & Meilke, Karl D. & Knutson, Ronald D. & Ochoa, Rene F. & Rude, James, 2006. "Achieving NAFTA Plus," 2006 NAAMIC Workshop III: Achieving NAFTA Plus 163871, North American Agrifood Market Integration Consortium (NAAMIC).
  9. Dominique van der Mensbrugghe & John C. Beghin & Don Mitchell, 2003. "Modeling Tariff Rate Quotas in a Global Context: The Case of Sugar Markets in OECD Countries," Food and Agricultural Policy Research Institute (FAPRI) Publications 03-wp343, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  10. John Beghin & Jean-Christophe Bureau & Sophie Drogue, 2004. "Calibration of incomplete demand systems in quantitative analysis," Applied Economics, Taylor & Francis Journals, vol. 36(8), pages 839-847.
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