The Economic and Political Factors Affecting the U.S. Sugar Subsidy Program

Sugar growers continue to benefit from favorable economic conditions provided by the U.S. government. Yet empirical data reveal a decrease in the aggregate support for sugar legislation in recent years. In 1978, there were 9,187 full or part owners of sugar cane and sugar beet farms, compared to 7,799 farms in 1987. The level of sugar subsidy allocated to the farmers, however, has increased and even favored certain sugar growers disproportionately over others. Such empirical findings suggests that politics, as much as economics, affect the level of sugar subsidy. This paper examines why an increasingly smaller number of sugar farmers receive a steadily larger government subsidy