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This study examines the impacts of federal support programs for sugar, peanuts, corn and wheat on U.S. and world markets, using a multi-country, multi-commodity, partial equilibrium world agricultural model. A five-year baseline projection is developed assuming past policy will continue. Four policy reform scenarios are then conducted. Each scenario considers the removal of federal programs such as loan rate, loan deficiency payments and other trade restrictions for each commodity (sugar, peanuts, corn and wheat). A fifth, and last, scenario looks at the impact of jointly eliminating the wheat and corn support programs. Federal programs appear to have the maximum impacts on the sugar market, followed by the peanut market. As compared to sugar and peanuts, wheat and corn markets appear to be the least affected by federal support programs.


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