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Wheat Support: The Impact of Target Prices Versus Export Subsidies

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Report Type Reports and Testimonies
Report Date June 7, 1994
Report No. RCED-94-79
Subject
Summary:

The Export Enhancement Program lowers the price of U.S. agricultural products to overseas markets in order to boost the U.S. share of world markets and is intended to pressure countries that subsidize agricultural exports to eliminate trade-distorting practices. The program is particularly important for wheat. Since 1985, more than half of all U.S. wheat has been exported and more than half of these exports have received program subsidies. Program expenditures totaled $6.34 billion from its inception in 1985 through fiscal year 1993; 76 percent of this was for wheat exports. This report (1) examines how the program has affected the income of wheat producers and grain exporters and (2) determines to what extent wheat farmers' incomes would have increased if more program funds had been used for direct income support payments through higher target prices.

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