Willingness to Pay for Surplus Sugar in the United States

9 Pages Posted: 21 Jun 2010

See all articles by Hongli Feng

Hongli Feng

Iowa State University - Center for Agriculture and Rural Development (CARD)

Chad Hart

Iowa State University - Center for Agriculture and Rural Development (CARD)

Abstract

Sugar supply is managed in the United States to support minimum prices set by law. The 2008 farm bill contains the sugar-to-ethanol program to sell surplus sugar to ethanol producers and a program that allows bids from sugar processors. The sugar program is required to run at no net cost to taxpayers. Bids for surplus sugar are analyzed under various scenarios. Sugar processors will outbid ethanol producers given current ethanol prices. At present, surplus sugar bids will not exceed the minimum prices, and the sugar-to-ethanol program will not be able to help the government achieve no net program costs.

Suggested Citation

Feng, Hongli and Hart, Chad, Willingness to Pay for Surplus Sugar in the United States. Contemporary Economic Policy, Vol. 28, No. 3, pp. 429-437, July 2010, Available at SSRN: https://ssrn.com/abstract=1627391 or http://dx.doi.org/10.1111/j.1465-7287.2009.00189.x

Hongli Feng (Contact Author)

Iowa State University - Center for Agriculture and Rural Development (CARD) ( email )

Ames, IA 50011
United States

Chad Hart

Iowa State University - Center for Agriculture and Rural Development (CARD) ( email )

Ames, IA 50011
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
2
Abstract Views
260
PlumX Metrics