This report examines the agricultural trade policy environment surrounding the 1985 farm legislation. The report has several central themes. First, U.S. domestic farm programs project a trade policy to other nations; that is, the trade effects of U.S. policies are not neutral. Second, the trade effects of U.S. policies differ according to the export demand situation facing the United States. Third, macroeconomic policies could have a major impact on achieving the,objectives of U.S. farm policy established in the 1985 farm legislation.