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U.S. Food Aid and Agricultural Cargo Preference Policy

Author

Listed:
  • Bageant, Elizabeth R.
  • Barrett, Christopher B.
  • Lentz, Erin C.

Abstract

This paper uses an unprecedentedly rich data set to estimate the cost of agricultural cargo preference (ACP) restrictions on United States food aid programs and to document some of the competitiveness and national security impacts. ACP cost US taxpayers $140 million in 2006, 46 percent above competitive freight costs. The unreimbursed cost of ACP to food aid agencies roughly equals USAID’s non‐emergency food aid to Africa. Furthermore, 70 percent of ACP vessels did not satisfy criteria to be deemed militarily useful and vessels ultimately owned by foreign corporations carried a large share of ACP food aid shipments.

Suggested Citation

  • Bageant, Elizabeth R. & Barrett, Christopher B. & Lentz, Erin C., 2010. "U.S. Food Aid and Agricultural Cargo Preference Policy," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61250, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61250
    DOI: 10.22004/ag.econ.61250
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    File URL: https://ageconsearch.umn.edu/record/61250/files/AAEA%20Cargo%20Preference%2010877.pdf
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    Citations

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    Cited by:

    1. Li, Shanjun & Kahn, Matthew E. & Nickelsburg, Jerry, 2015. "Public transit bus procurement: The role of energy prices, regulation and federal subsidies," Journal of Urban Economics, Elsevier, vol. 87(C), pages 57-71.
    2. Stephanie Mercier & Vincent Smith, 2020. "Cargo Preference and U.S. International Food Aid Programs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 759-776, December.
    3. Ryan Cardwell & Pascal L. Ghazalian, 2020. "The Effects of Untying International Food Assistance: The Case of Canada," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1056-1078, August.
    4. Brian Wetzstein & Raymond Florax & Kenneth Foster & James Binkley, 2019. "Rejuvenating Mississippi River's Post‐Harvest Shipping," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(4), pages 723-741, December.
    5. Kenneth Button, 2016. "The political economy of shipping US food and aid under the cargo preference regime," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 18(4), pages 353-370, December.
    6. Alex Nikulkov & Christopher B Barrett & Andrew G Mude & Lawrence M Wein, 2016. "Assessing the Impact of U.S. Food Assistance Delivery Policies on Child Mortality in Northern Kenya," PLOS ONE, Public Library of Science, vol. 11(12), pages 1-15, December.
    7. Guy Jackson, 2020. "The influence of emergency food aid on the causal disaster vulnerability of Indigenous food systems," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 37(3), pages 761-777, September.
    8. Gentilini, Ugo, 2014. "Our daily bread : what is the evidence on comparing cash versus food transfers?," Social Protection Discussion Papers and Notes 89502, The World Bank.

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