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Sugar Program: Changing Domestic and International Conditions Require Program Changes

RCED-93-84 Published: Apr 16, 1993. Publicly Released: May 18, 1993.
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Highlights

Pursuant to a congressional request, GAO reviewed the Department of Agriculture's (USDA) sugar program, focusing on: (1) the program's effects on sweetener users and producers; (2) the impact of changes in domestic sweetener production and consumption; and (3) pending international trade agreements' effect on the program's operation.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Because of the additional user costs of the sugar program and the possibility that it will not operate in the future as it does today, Congress needs to consider legislation to move the sugar industry toward a more open market. As part of this transition, the market price for sugar should be lowered. To achieve a lower market price, Congress should gradually lower the loan rate for sugar and direct USDA to adjust import quotas accordingly. Reducing the loan rate gradually would allow producers time to make orderly adjustments.
Closed – Not Implemented
The 104th Congress did not address the recommendation in the Federal Agriculture Improvement and Reform Act of 1996. No action is anticipated until the next farm bill is taken up in 2002.

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Topics

Agricultural productionAgricultural programsForeign trade policiesImport regulationImport restrictionImportingInternational agreementsPrice supportsSugarSugar program