U.S. Sugar Program

The U.S. Sugar program has led to two main outcomes: Higher sugar prices and higher profits for farmers. According to USDA data, in FY2025, sugar prices in the United States were 36.90¢/pound. The world price was 18.58¢/pound.^[2] Multiple analyses by trade experts have attributed higher prices to the Sugar Program.^{[3][4][5][6][7][8]} The impact of this, according to the American Enterprise Institute, is that "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."^[6] An October 2023 research review by the Government Accountability Office suggests that "the U.S. sugar program results in an increase in domestic sugar production and higher profits for farmers, totaling an estimated $1.4 billion to $2.7 billion in additional benefits annually." However, these benefits are offset by substantial costs to downstream industries. A 2006 analysis by the International Trade Administration concluded that "The existing literature on the economic effects of liberalization of U.S. sugar prices suggests that eliminating sugar quotas and tariff rate quotas and allowing sugar to enter the United States duty free would result in economic gains in the form of increased domestic food manufacturing production and U.S. exports, gains for consumers, taxpayer savings, and a net positive effect on U.S. employment."^[9]