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U.S. wheat exports have expanded significantly since passage of the Food Security Act of 1985, fulfilling the act's objective to make the United States more competitive in world grain markets. The Export Enhancement Program and lower wheat loan rates, both authorized by the 1985 Act, were major factors in the growing U.S. wheat export market. The act accounts for a significant portion of the recent increase in wheat exports. Other factors beyond the control of U.S. policymakers also contributed to the rise in wheat exports: smaller yields of U.S. wheat competitors and higher import demand by the Soviet Union and China. This bulletin identifies factors that expanded recent wheat exports. It finds that policy effectiveness changes as market conditions change.


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