The current prospects for U.S. agriculture, particularly for its export sector, are examined in the light of the new 1985 Farm Bill. After having taken stock of the situation in the 1970s and the developments in the 1980s so far, the paper goes on to define the problems in U.S. agriculture as declining equity, worsening of debt asset ratios and a growing incidence of non-performing farm loans jeopardising the life of many rural banks. The main thrust of the argument is that for the survival and long-term well being of U.S. agriculture, liberalisation of trade would be a most efficient strategy for the world market as a whole.