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The Department of Agriculture administers the U.S. sugar program to support domestic sugar production through tools such as limiting the supply of sugar. The program creates higher sugar prices, which cost consumers more than producers benefit, at an annual cost to the economy of around $1 billion per year.
Originating with the Agriculture and Food Act of 1981, the U.S. Sugar Program maintains a minimum price for sugar with the goal of protecting sugar-industry growers and processors. As with any government-subsidized commodity, governments often need to raise or reallocate taxes to manage funds.
Sugar as a commodity touched many aspects of the Atlantic economy, brought millions of Africans to the Caribbean and to Brazil to cultivate the crop, and created a class of fabulously wealthy merchants and planters and a political interest group with docHub power in European government.
Executive Summary The sugar program is a protectionist policy, which increases the domestic price of sugar above the corresponding world price. It restricts imports of raw and refined sugar, depresses world sugar prices, and substantially changes the mix of sweeteners used in processed food. Analysis of the US Sugar Program | American Enterprise Institute - AEI aei.org research-products report analys aei.org research-products report analys
American Economy Benefits From U.S. Sugar Policy A strategically important industry for an essential ingredient. Responds to foreign predatory trade practices. Adds $23.3 billion annually to the U.S. economy and employs 151,000 people. Reliable supplies and stable sugar prices for consumers. Benefits of Current Policy - American Sugarbeet Growers Association americansugarbeet.org benefits-of-current-policy americansugarbeet.org benefits-of-current-policy
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Because the United States does not produce enough sugar domestically, American food and beverage manufacturers depend on imports to meet consumer demands each year.
In contrast to long-standing assertions by industry groups such as the ASA, the US sugar program has been shown to cost consumers $2.4$4 billion a year and induce losses of 17,000 to 20,000 jobs in the food processing and confectionery industries. Recapping the Effects of the US Sugar Program - AEI aei.org research-products report recap aei.org research-products report recap
The US has a complicated price support program that limits the import of sugar. Candy makers say the culprit is the federal sugar program, a combination of import restrictions, production quotas and loan programs dating to the 1930s, all designed to keep the price of American sugar well above that of the world market. Why does the U.S. protect the American sugar industry? - Quora quora.com Why-does-the-U-S-protect-the- quora.com Why-does-the-U-S-protect-the-

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