POLICY BRIEFS
An Examination of Foreign Subsidies and Trade Policies for Sugar
The ICAC hosts and maintains a database of subsidies and trade policy information for public use. The report summarizes the information obtained and housed in the database relating to sugar in key producing, consuming, exporting, and importing countries. Data on tariff rates were gathered from the World Trade Organization tariff database. Production, export, and import data are from the U.S. Department of Agriculture. Other county policies are summarized from the U.S. Department of Agriculture’s (USDA) Global Agricultural Information Network (GAIN) reports obtained online from the Foreign Agricultural Service (FAS)-USDA website.
The report covers 29 countries (including the EU), which, according to USDA data for 2025/26, account for 86.2% of global sugar production, 68.8% of global consumption, and 87% of global exports.
Read the Sugar Trade Policy Brief
Margin Coverage Option: A Different Approach to Covering Shallow Losses
When it comes to covering shallow losses there are many options available to growers. The least expensive options are through the USDA Farm Service Agency and offer either revenue or price protection, albeit with the limitations of narrow coverage bands and pay limits. A second set of options include insurance-based products offered through the USDA Risk Management Agency and the Federal Crop Insurance program.
One of the newest is the Margin Coverage Option (MCO), which covers a five percent band from 95 percent down to 90 percent, but adds changes in input costs (instead of just price and yield) to determine when a loss of potential margin (i.e.-profit) has been incurred.
Will the Buy American Cotton Act (BACA) Save the U.S. Cotton Industry?
The Buy American Cotton Act (BACA) of 2026 would authorize a set of domestic tax credits designed to incentivize the consumption of U.S. cotton and products manufactured from U.S. cotton produced both domestically and imported.
While the program is designed specifically to increase demand for U.S. cotton and promote domestic consumption of U.S. cotton, the question is how effective a program like this is to lead to improved markets for U.S. cotton producers.
