Hostname: page-component-78c5997874-94fs2 Total loading time: 0 Render date: 2024-11-14T11:18:00.436Z Has data issue: false hasContentIssue false

The Impact of the Food Security Act of 1985 on U.S. Wheat Exports

Published online by Cambridge University Press:  05 September 2016

Kenneth W. Bailey*
Affiliation:
Food and Agricultural Policy Research Institute (FAPRI), Department of Agricultural Economics, University of Missouri-Columbia

Abstract

A major objective ofthe Food Security Act of 1985 was to make the United States more competitive in world markets. U.S. wheat exports in 1987/88 were 75 percent above their 1985/86 level. This paper analyzes the change in U.S. competitiveness in wheat exports by quantitatively assessing those factors responsible for this export expansion. The results indicate that about half of the increase can be attributed to the provisions ofthe 1985 Act. About 40 percent ofthe increase is due to nonprice factors in the Soviet Union and China—namely production shortfalls and domestic policies—that increased import demand. The rest is due to reduced competitor yields.

Type
Submitted Articles
Copyright
Copyright © Southern Agricultural Economics Association 1989

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abbott, P.C., Paarlberg, P.L., and Patterson, P.M.. “Supplier Substitutability by Importers: Implications for Assessingthe 1980 U.S. Grain Embargo.So. J.Agr. Econ., 20 (1988): 114.Google Scholar
Alaouze, C.M., Watson, A.S., and Strugess, N.H.. “Oligopoly Pricing in the World Wheat Market.Amer. J. Agr. Econ., 60 (1978):173185.CrossRefGoogle Scholar
Bailey, K.W. “The Impact of the Food Security Act of 1985 on U.S. Wheat Exports: An Econometric Analysis.” Ph.D. Dissertation, Dept. of Agricultural and Applied Economics, University of Minnesota, September 1988.Google Scholar
Bailey, K.W. A Structural Econometric Model of the World Wheat Market. ERS, USDA, Tech. Bull. No. 1763, June 1989.Google Scholar
Bailey, K.W. and Goodloe, C.. “An Econometric Analysis of the Effect of the Food Security Act of 1985 on the Wheat Sectors of Canada and Australia.” Wheat Situation and Outlook Report. ERS, USDA, WS-279, September 1987.Google Scholar
Bancroft, R.L. “An Econometric Analysis of Aggregate Acreage Response, Program Participation and Land Retirement.” Ph.D. Dissertation, Dept. of Agricultural Economics, Purdue University, 1981.Google Scholar
Bredahl, M. Meyers, W., and Collins, K.. “The Elasticity of Foreign Demand for U.S. Agricultural Products: The Importance of the Price Transmission Elasticity.Amer. J. Agr. Econ., 61(1979):5863.Google Scholar
Devadoss, S. Helmar, M., and Meyers, W.. “FAPRI Trade Model for the Wheat Sector: Specification, Estimation, and Validation.” Staff Report No. 86- SR3. Center for Agricultural and Rural Development, Iowa State University, January 1986.Google Scholar
Glauber, J.W. Generic Certificates. ERS, USDA, Agr. Econ. Report No. 594, August 1988.Google Scholar
Grennes, T. and Johnson, P.. “Oligopoly Pricing in the World Wheat Market: Comment.Amer. J. Agr. Econ., 61 (1979):574577.CrossRefGoogle Scholar
Houck, J.P.The Basic Economics of an Export Bonus Scheme.No. Cent. J. Agr. Econ., 8(1986):227235.Google Scholar
Johnston, J. Econometric Methods. New York: McGraw-Hill Book Co., 1984.Google Scholar
McCalla, A.F.A Duopoly Model of World Wheat Pricing. “Amer.J.Agr.Econ., 48(1966):711727.Google Scholar
Meilke, K. and Gorter, H.de. An Econometric Model of the European Economic Community's Wheat Sector. Working Paper No. 86-3. International Agricultural Trade Research Consortium, February, 1986.Google Scholar
Pindyck, R. and Rubinfeld, D.. Econometric Models and Economic Forecasts. New York: McGraw-Hill Book Co., 1981.Google Scholar
Salathe, L. and Langley, S.. “An Empirical Analysis of Alternative Export Subsidy Programs for U.S. Wheat.J. Agr. Econ., 38, 1 (1986): 118.Google Scholar
Smith, M. Increased Role for U.S. Farm Export Programs. ERS, USDA, Agr. Info. Bull. No. 515, April 1987.Google Scholar
Smith, M. “Programs Boost U.S. Farm Exports.” Agricultural Outlook. ERS, USDA, AO-141, May 1988.Google Scholar
Thompson, R.L. Statement by Robert L. Thompson, Assistant Secretary of Agriculture for Economics before the House Appropriations Committee, Subcommittee on Agriculture, Rural Development, and Related Agencies. U.S. Congress, House, Committee on Appropriations, 99th Cong., 1st sess., 1987.Google Scholar
U.S. Department of Agriculture. Economic Research Service. Embargoes, Surplus Disposal, and U.S. Agriculture. AER-564, December 1986.Google Scholar
U.S. Department of Agriculture. Economic Research Service. Wheat Situation and Outlook Report. WS-283, November 1988.Google Scholar