An Econometric Analysis of U.S. Wheat Acreage Response: The Impact of Changing Government Programs

This study is an attempt to evaluate effectiveness of farm commodity programs and farmers' response to market prices.Agricultural and Food Policy, Marketing, Production Economics,

THE U.S. CANE AND BEET SUGAR INDUSTRY UNDER ALTERNATIVE TRADE LIBERALIZATION POLICY OPTIONS

The objective of this study is to analyze major issues the U.S. sugar industry is facing or will face in the near future and the impacts of alternative trade liberalization policies in the United States and the European Union (EU) on the U.S. sugar industry. Special attention is given to regional competitiveness in sugar production in the United States. A global sugar policy simulation model was used for this study. This study indicates that most sugar producing regions may be able to survive at current costs and asset values if both the United States and the EU liberalize their sugar trade, while sugar subsidies remain in other countries. However, if only the United States eliminates its sugar programs, all U.S. sugar producing regions would be threatened.sugarbeet, sugarcane, loan rates, import liberalization, sugar price, Caribbean sugar price, high fructose corn syrup, International Relations/Trade,

THE IMPACTS OF CHINA'S ACCESSION INTO THE WTO ON THE U.S. WHEAT INDUSTRY

The purpose of this study is to evaluate the impacts of China's entry into the World Trade Organization on the world wheat industry. Special attention is given to the impact on the U.S. wheat industry. The Global Wheat Policy Simulation Model was used for this analysis. This study indicates that the total value of China's imports from the United States in 2005 are predicted to increase by $221 million in the normal import scenario and$842 million in the maximum import scenario. However, net increases in U.S. export value would range from $127 million to$577 million in 2005 because increased world price of wheat in the scenarios lowers wheat imports from other countries.wheat industry, tariff-rate quota, bilateral agreement, wheat imports, wheat price, International Relations/Trade,

BILATERAL TRADE OF DURUM WHEAT AND BARLEY UNDER CUSTA AND IMPLICATIONS FOR FARM PRICE AND INCOME

The objective of this study is to evaluate the impacts of Canadian exports of durum wheat and barley to the United States on the U.S. domestic prices of these two commodities and farm income in durum wheat and barley growing regions in the United States. Major factors affecting trade flows of agricultural commodities between the United States and Canada are the U.S. export enhancement program, the elimination of Canadian rail subsidies, marketing power of the Canadian Wheat Board, differences in macroeconomic conditions, and differences in resource endowments. They have influenced Canadian exports positively and resulted in major increases in Canadian exports of agricultural commodities to the United States. The increased Canadian exports reduce domestic prices of durum wheat and barley and consequently lowered farm income in durum wheat and barley growing regions in the United States.Bilateral Trade, Farm Income, Subsidies, Resource Endowments, Durum Wheat, Barley, International Relations/Trade,

BOOK REVIEW: SCHMITZ, ANDREW AND HARTLEY FURTAN. CANADIAN WHEAT BOARD: MARKETING IN THE NEW MILLENNIUM

Teaching/Communication/Extension/Profession,

CANADIAN EXPORTS OF WHEAT AND BARLEY TO THE UNITED STATES AND ITS IMPACTS ON U.S. DOMESTIC PRICES

Canadian exports of wheat and barley to the United States have increased significantly since the late 1980s. The objectives of this study are to determine the factors that affect trade flows of hard red spring wheat, durum wheat, malting barley, and feed barley from Canada to the United States and to evaluate the impacts of Canadian wheat and barley exports on the U.S. domestic prices of these commodities. Major factors affecting trade flows of these commodities from Canada to the United States include the exchange rate, quality differences, differences in market size, the U.S. Export Enhancement Program, the elimination of Canadian rail subsidies, and trade liberalization under the Canada - United States Free Trade Agreement of 1989 (CUSTA). These factors have positively influenced Canadian exports, resulting in major increases in Canadian exports of agricultural commodities to the United States. The increased Canadian exports have resulted in reduced U.S. domestic prices of wheat.bilateral trade, free trade agreement, wheat, barley, farm price, International Relations/Trade,

POTENTIAL EFFECTS ON U.S. CATTLE AND BEEF PRICES FROM REOPENING THE BORDERS

U.S. trade of beef and live cattle has declined substantially since the discoveries of bovine spongiform encephalopathy (BSE) in Canada and the United States in 2003. Imports of live cattle from Canada resumed in July 2005, but U.S. beef exports remained substantially below pre-BSE levels as important export markets in Japan and Korea were not regained. The removal of the ban on Canadian imports and the eventual lifting of bans to export markets could affect U.S. cattle and beef prices. In this study, an econometric model is developed and estimated to determine the effects of lifting trade restrictions on cattle and beef prices. Results show that if net cattle imports from Canada increase to 1.5 million animals per year, with beef imports held constant, the slaughter steer, feeder steer, and retail beef prices would decrease $4.65/cwt,$5.31/cwt, and 6.55 cents/lb, respectively. However, the drop in prices from increased imports would be more than negated if beef exports returned to near previous levels. If beef exports increased to 100 percent of the 2003 level, slaughter steer, feeder steer, and retail beef prices could increase by $7.83/cwt,$8.95/cwt, and 16.0 cents/lb, respectively.bovine spongiform encephalopathy, beef exports, cattle imports, prices, Livestock Production/Industries,

PROCESSED FOOD TRADE AND FOREIGN DIRECT INVESTMENT UNDER NAFTA

Trade in processed food products is rapidly growing. Trade with Canada and Mexico has especially been growing since free trade agreements have been implemented. The U.S. presence in the processed food industry in other countries through foreign direct investment (FDI) is also large and has been expanding. The relationship between trade and FDI is uncertain and subject to much debate. Japan and Canada are the largest importers of processed foods from the United States, followed by Mexico and Korea. Canada is the leading exporter of food products to the United States, followed by France, Mexico, and Italy. Canada and Mexico have, in recent years, become increasingly important trading partners in processed foods. Results from this study do not conclusively indicate any type of relationship between FDI and trade. Trade in processed foods also appears to be mostly insensitive to the exchange rate. Some of the increase in trade flows can be explained by growth in real GDP. Trade liberalization may also explain the increase in trade flows. Free trade agreements have positively influenced U.S. FDI in Canada and Mexico. Labor cost and inflation in the host country also influences U.S. FDI.trade, processed foods, foreign direct investment, Canada, Mexico, International Relations/Trade,

SUBSTITUTION BETWEEN U.S. AND CANADIAN WHEAT BY CLASS

The importation of hard red winter and durum wheat from Canada has been a source of contention among U.S. wheat growers, due to the likeness between domestic and imported Canadian wheat. It has also been investigated as a source of material injury to the U.S. market. We examine the relative substitution between U.S. and Canadian wheat, by class, by treating wheat as an input in flour production. We find that while U.S. hard red spring wheat and U.S. hard red winter wheat are economic substitutes, there is limited price substitution between U.S. and Canadian durum and U.S. and Canadian hard red spring wheat. Quality differences from the millers' perspective may be the reason driving the import demand for hard red spring and durum wheat from Canada.International Relations/Trade,

FORCES RESHAPING WORLD AGRICULTURE

This paper examines many of the forces reshaping world agriculture. Among these forces are increased trade liberalization, agricultural research and development, and new movements in developing countries. Worldwide agricultural production is likely to become more competitive as a result of increased trade liberalization through the World Trade Organization and regional and bilateral free trade agreements. Countries can become more competitive through agricultural research and development. As a result of research and development, total agricultural production has increased significantly across the world over the last several decades. Agricultural research has also led to the development of many new, non-food uses for agricultural products. New movements in developing countries include the substantial increases in agricultural production in Brazil and Argentina, and increases in consumption in China and other countries.globalization, research and development, productivity, biofuels, Brazil, food demand, International Relations/Trade,