The U.S. Sugar Program

Overview

The U.S. sugar program – a complex mix of tariff-rate quotas (TRQs), domestic market allotments, and price supports – often results in sugar supply shortages, increased consumer costs, and U.S. manufacturing jobs moved overseas.

Where Does Sugar Come From?

Domestic Sources
Sugar is derived from two different crops, which are grown in a handful of states:

  • Sugarcane is milled into raw sugar and then refined. It is grown in Florida, Hawaii, Louisiana, and Texas.
  • Sugar beets are processed directly into refined sugar. They are grown in California, Colorado, Idaho, Michigan, Minnesota, Montana, Nebraska, North Dakota, Oregon, Washington, and Wyoming.

International Sources
The United States must rely on sugar imports to meet market demand each year. Most imports come from countries in Central America, South America, Asia, Africa, and the Caribbean.

What Impact Does the Sugar Program Have?

In practice, the sugar program negatively impacts all supply chain ends. For example:

  • American food manufacturers pay two times the world cost of sugar.
  • Consumers pay an estimated $2.5 – $3.5 billion in inflated food prices yearly, disproportionately affecting low-income families.
  • Complex program administration limits real-time market responsiveness from sugar growers domestically and internationally.

How Can You Get Involved?

How Can You Get Involved?

  • If you have been impacted by the sugar program in your business, contact NCA to tell your story
  • Visit the Alliance for Fair Sugar Policy to learn more about the program
  • Update your contact information so we can contact you with the most up-to-date information.