Food Aid and Agricultural Cargo Preference

Applied Economic Perspectives and Policy, Forthcoming

Posted: 23 May 2011

See all articles by Elizabeth R. Bageant

Elizabeth R. Bageant

Cornell University

Christopher B. Barrett

Cornell University - Charles H. Dyson School of Applied Economics & Management

Erin Lentz

University of Texas at Austin - Lyndon B. Johnson School of Public Affairs

Date Written: June 29, 2010

Abstract

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, Q10

Suggested Citation

Bageant, Elizabeth R. and Barrett, Christopher B. and Lentz, Erin, Food Aid and Agricultural Cargo Preference (June 29, 2010). Applied Economic Perspectives and Policy, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1845770

Elizabeth R. Bageant

Cornell University ( email )

Ithaca, NY 14853
United States

Christopher B. Barrett (Contact Author)

Cornell University - Charles H. Dyson School of Applied Economics & Management ( email )

315 Warren Hall
Ithaca, NY 14853-7801
United States
607-255-4489 (Phone)
607-255-9984 (Fax)

HOME PAGE: http://aem.cornell.edu/faculty_sites/cbb2/

Erin Lentz

University of Texas at Austin - Lyndon B. Johnson School of Public Affairs ( email )

2300 Red River St., Stop E2700
PO Box Y
Austin, TX 78713
United States

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