This dynamic, econometric approach extends a 1986 report that examined the effect of exchange rates, U.S. agricultural policy, and world income growth on U.S. wheat exports. This report confirms earlier results indicating that U.S. wheat exports are strongly influenced by changes in competitors' exchange rates and target prices, and little by changes in world income. An important difference from earlier findings is the longer time period over which exchange rate changes affect wheat exports. Export levels may not be fully affected by exchange rate changes until 4 years after the initial exchange rate change.