The study reported in this bulletin is the second in a series dealing with the apparent over-capacity of agriculture and the relative competitive advantages of different producing regions of the United States. Like the previous study, analysis is restricted to wheat and feed grains. Initial research was reported in United States Department of Agriculture Technical Bulletin No 1241(.1)· Interpretation and summary of this initial study, especially to provide background information for the research reported in this bulletin, is given in a following section.