Farm Bill Case

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The United States is one of the largest producers and consumers of sugar, ranking fifth globally. The US sugar industry has been enjoying protection from external sugar exports since 1789 after Congress enacted tariffs that brought forth security against the entry of foreign sugar into the local markets. Since the enactment of the taxes by the Congress, the U.S. government has continually provided protection and trade support to the domestic sugar industries. However, the current sugar program lays its foundation on the “Farm Bill” that was formulated in 1990 (Smith, 2015). In this case, the farm bill acts as the primary framework useful in setting sugar policies. The system constitutes of three pillars that entail price support gained through special agreements regarding loans, tariff quotas, and domestic control of markets.
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This prospect as indicated by the research by Smith (354) brings forth the increase in demand. With growing demand for sugar in the domestic economy supplies would eventually raise the prices to ensure they capitalize on the high demand. Therefore, it is clear that the interference of the government in the sugar markets is hurting the ordinary American consumer as well as food manufacturers as they are forced to purchase products at extensively high prices regardless of the fall in global sugar prices. The need for reforms in the sugar policies as such concerns various factors: The Farm Bill sugar program has cost American taxpayers billions each financial year. The corresponding sugar subsidies has resulted in consumers incurring extra pricing on sugar, the sugar programs and policies has as well led to loss and destruction of numerous jobs due to the implementation of

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