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THE EXPECTED COST OF AN INCOME SUPPORT PROGRAM FOR PROCESSING ORANGES
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Abstract
The Florida citrus industry operates in a competitive global market. However, unlike program crops, producers in this industry do not benefit from direct income support under the new Farm Bill. There is concern about the impact of elimination of the orange juice tariff on the financial health of the Florida orange industry. The purpose of this paper is to examine the level of government expenditure that would be needed to provide income support to orange producers if the orange juice tariff were eliminated. For the span of the Bill direct payments to corn are estimated to total 25.1billion.Bycomparisonthedirectexpendituresincurredforanincomesupportprogramfororangeswouldbesubstantiallyless.Intheearlyyearswiththetariffinplacetheexpendituresareestimatedtobeabout300 million and would fall below 200millionby2007.Ifthetariffwereremovedgovernmentsupportwouldinitiallybe925 million but would decline to about 700millionin2007.Overthesix−yearperiod,2002−2007,thedirectpaymenttoorangeproducerswouldbe1,538.5 million with retention of the tariff and $4,721.8 million if the tariff were eliminated.income support program, oranges, tariff, FSRIA, Agricultural and Food Policy, Crop Production/Industries,