A "hybrid" spatial price equilibrium model is developed to evaluate changes in production, consumption, and trade of feed and malting barley under alternative domestic and agricultural trade policy regimes. The analysis includes the economic welfare impacts of changes in various farm subsidy programs on the United States, Canada, Australia, and European Union (EU-15) which are the four major barley exporting countries in the world. The actions of competitive U.S. grain traders under the Export Enhancement Program cause feed barley exports to be segmented into two distinct markets. A spatial equilibrium is established in which the Canadian Wheat Board and Australian marketing boards behave as oligopolists in export markets under arbitrage conditions induced by U.S. and EU-15 grain traders.