U.S. Sugar Program

U.S. Sugar Program is a federal agricultural program in the United States that manages the production and marketing of sugar. The program is administered by the United States Department of Agriculture (USDA) and is designed to maintain a stable sugar market and protect American sugar farmers and processors from fluctuations in the global sugar market.

History

The U.S. Sugar Program was established in the 1934 as part of the Agricultural Adjustment Act. The program was created in response to the economic hardships faced by sugar farmers during the Great Depression. Over the years, the program has undergone several changes and revisions, but its primary goal of stabilizing the U.S. sugar market has remained consistent.

Program Structure

The U.S. Sugar Program operates through three main mechanisms: price supports, marketing allotments, and import quotas.

Price Supports

The USDA supports domestic sugar prices through loans to sugar processors. If the market price falls below the cost of production, processors can forfeit their sugar to the USDA in lieu of repaying their loans, effectively setting a floor on the domestic price of sugar.

Marketing Allotments

The USDA sets marketing allotments for sugar, which limit the amount of domestically-produced sugar that processors can sell each year. These allotments are designed to prevent oversupply in the market.

Import Quotas

The USDA also sets import quotas to limit the amount of foreign sugar that can enter the U.S. market. These quotas protect domestic sugar producers from competition with lower-priced foreign sugar.

Criticism and Controversy

The U.S. Sugar Program has been the subject of criticism and controversy. Critics argue that the program artificially inflates the price of sugar in the U.S., leading to higher costs for consumers and food manufacturers. Supporters of the program, however, argue that it is necessary to protect American jobs and ensure a stable domestic sugar supply.

See Also

• Agricultural policy of the United States
• Sugar Act
• Sugar beet
• Sugar cane