Exporting processed agricultural products rather than raw commodities benefits society much more than just the increased value of the commodities themselves. Processing adds to the value of the products and generates greater business activity, more jobs, higher personal income, and greater tax revenues. The issue of adding value to exports becomes even more relevant in view of the recently expanded use of subsidies to spur growth of raw grain and oilseed exports. Do such subsidies fully exploit the U.S. agricultural competitive advantage? Processing wheat worth $1 million would generate as much as $9 million in business activity, 109 full-time jobs, $1.9 million in personal income, $160,000 in Federal personal income taxes, and $199,000 in Federal corporate income taxes. Processing other commodities could yield even greater economic benefits. Trade barriers, foreign demand, and domestic capacity could prevent full realization of the potential economic benefits.