Barley is the third leading feed grain grown in the United States. Production is concentrated in the Northern Plains and Pacific regions. Barley is mainly used for livestock feed and the manufacture of malt beverages. Feed use often accounts for well over half of total use. Barley is the most important grain product used by brewers. Exports are much smaller than domestic use and are highly variable. Barley yields have steadily risen, but production costs have also increased relative to returns. Government loan rates and target prices for barley are based on those for corn. Returns above cash expenses in recent years were considerably lower than during 1975-80. Returns have increased gradually since 1986. Government payments to barley growers, while relatively small compared with corn, have been a significant portion of barley net returns in recent years.