Food Aid and Agricultural Cargo Preference
Elizabeth R. Bageant
Christopher B. Barrett
Cornell University - Charles H. Dyson School of Applied Economics & Management
June 29, 2010
Applied Economic Perspectives and Policy, Forthcoming
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.
Keywords: Food Aid, International Food Assistance, Maritime Support, PL480, Shipping
JEL Classification: O20, Q10Accepted Paper Series
Date posted: May 23, 2011
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