Trade Implications of the Food Security Act of 1985
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The Center for Agricultural and Rural Development (CARD) conducts innovative public policy and economic research on agricultural, environmental, and food issues. CARD uniquely combines academic excellence with engagement and anticipatory thinking to inform and benefit society.
CARD researchers develop and apply economic theory, quantitative methods, and interdisciplinary approaches to create relevant knowledge. Communication efforts target state and federal policymakers; the research community; agricultural, food, and environmental groups; individual decision-makers; and international audiences.
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One of the central themes of the Food Security Act of 1985 (FSA85) is to make the United States more competitive in exporting agricultural commodities. The means to achieve this objective include lower loan rates, marketing loan provisions, and export credits and subsidies. The comprehensive analysis of the FSA85 (Womack et. al.) has taken these programs into account in making estimates of U.S. prices, exports and other performance variables. The purpose of this paper is to focus attention on the foreign import demand and competitor supplies that underlie the U.S. export estimates and to evaluate the responsiveness of trade patterns to the changes in U.S. policies.