The study reported here is a continuation of an investigation of national and regional adjustment problems in wheat and feed-grain production. Earlier analyses are reported in USDA Technical Bulletin 1241(6). Much of the background material pertinent to this study is included in that publication. Empirical results, the implications and certain procedures are stressed in this report.

The analysis attempts to answer both practical and methodological questions. Among these are: Is the grain surplus problem likely to persist? How might optimum fertilizer use increase total production potential? How might this fertilizer use, together with certain improved practices, change the structure of regional comparative advantage? What regional patterns of wheat and feed-grain production are likely or possible with equilibrium in the wheat and feed-grain sector of agriculture? What regions are likely to gain or lose in comparative advantage with respect to these commodities? Finally, are certain programming models appropriate for analysis of interregional competition?