"Sugar supply is managed in the United States to support minimum prices set by law. The 2008 farm bill contains the sugar-to-ethanol program to sell surplus sugar to ethanol producers and a program that allows bids from sugar processors. The sugar program is required to run at no net cost to...

The article analyzes the welfare cost of the U.S. sugar program using a multimarket model of U.S. sweetener markets. The latter includes raw crops, sugar extraction and refining, and sweetener users (food-processing industries and final consumers). The authors address the industrial organization...