Order Code 98-253
CRS Report for Congress
Received through the CRS Web
U.S. Agricultural Trade: Trends, Composition,
Direction, and Policy
Updated August 11, 2006
Charles Hanrahan
Senior Specialist in Agricultural Policy
Resources, Science, and Industry Division
Beverly Banks
Research Assistant
Knowledge Services Group
Resources, Science, and Industry Division
Carol Canada
Information Research Specialist
Knowledge Services Group
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress

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U.S. Agricultural Trade: Trends, Composition, Direction,
and Policy
Summary
U.S. agricultural exports for FY2006 are forecast by the U.S. Department of
Agriculture at $67 billion. Agricultural imports are expected to reach $65 billion.
The trade surplus, projected to be $2 billion, has declined by almost $12 billion since
FY2001. Exports of bulk commodities (e.g., soybeans, wheat, and feed grains)
remain significant, but exports of high-value products (HVPs) (e.g., meats, fruits,
and vegetables) are increasing. HVPs accounted for 62% of total U.S. agricultural
exports in FY2005.
Leading markets for U.S. agricultural exports are Canada, Mexico, Japan,
China, the European Union, Taiwan, and Korea. The United States dominates world
markets for corn, wheat, and cotton. Brazil has overtaken the United States as the
world’s leading supplier of soybeans. Brazil is the world’s leading supplier of beef
to world markets, while the U.S. share has declined since the U.S. discovery of a cow
infected with “mad cow disease” in 2003. The United States, European Union,
Australia, and New Zealand are dominant suppliers of dairy products in global
agricultural trade
Most U.S. agricultural imports are high-value products. For some imports
(grains, meats, horticultural products), similar products are produced in the United
States; production of other categories of imports (bananas, coffee, cocoa) is very
limited. The biggest import suppliers are Canada and the European Union (EU), each
supplying $12.7 billion of agricultural imports to the United States. Mexico,
Australia, Brazil, New Zealand, Indonesia, and Colombia are also major suppliers of
agricultural imports to the United States.
Among the fastest-growing markets for U.S. agricultural exports are Canada and
Mexico, both partners with the United States in the North American Free Trade
Agreement (NAFTA). U.S. agricultural exports to China, recently a member of the
World Trade Organization, have grown at an annual rate of 16.4% since 1992.
Both the EU and the United States subsidize their agricultural sectors, but
overall the EU out subsidizes the United States. Recent reforms of the EU’s
Common Agricultural policy shift substantial spending into direct income support
decoupled from production and into rural development. Canada supports some
sectors (e.g., dairy and poultry) more than others. Australia provides less support to
its agriculture. Single desk sellers with monopoly powers operate wheat markets and
markets for some other commodities in Canada and Australia. Export subsidies are
more important in the EU than in the United States; border measures (tariffs) are
more important in Canada than in either the United States or the EU. Australia
operates a mix of trade measures. The United States is the dominant supplier of
foreign food aid, followed by the EU, Canada, and Australia. The United States has
the most diverse food aid programs; others limit food aid to development assistance
and emergencies.
This report will be updated.

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Contents
U.S. Agricultural Exports, Imports, and Trade Balance . . . . . . . . . . . . . . . . . . . . 2
Shares of U.S. Production Exported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Composition of U.S. Agricultural Exports: Major Commodity Components . . . . 6
Composition of U.S. Agricultural Exports: Bulk, Consumer-Ready, and
Intermediate Product Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Major Country Markets for U.S. Agricultural Exports . . . . . . . . . . . . . . . . . . . . 10
World Market Shares: Crops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
World Market Shares: Livestock and Dairy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Major U.S. Agricultural Imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
U.S. Agricultural Imports by Country of Origin . . . . . . . . . . . . . . . . . . . . . . . . . 36
Growth in U.S. Agricultural Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Growth in U.S. Agricultural Exports to Asian Markets . . . . . . . . . . . . . . . . . . . . 40
Growth in Agricultural Exports to North and South America . . . . . . . . . . . . . . . 42
Market Development Programs in Selected Countries . . . . . . . . . . . . . . . . . . . . 44
Producer Support Estimates (PSEs) in Selected OECD Countries . . . . . . . . . . . 46
Producer Support Estimates (PSEs) in the United States and the
European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Domestic Support and Export Subsidies in the United States and the
European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
List of Figures
Figure 1. U.S. Agricultural Exports and Imports, FY1988-FY2006F . . . . . . . . . 2
Figure 2. U.S. Agricultural Exports: Share of U.S. Production Exported,
1990-2006F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Figure 3. U.S. Agricultural Exports of Major Commodities, FY2005 . . . . . . . . . 6
Figure 4. U.S. Agricultural Exports, FY1989-FY2005 Bulk, Consumer Ready,
and Intermediate Product Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Figure 5. Major Country Markets for U.S. Exports FY2004-FY2006F . . . . . . . 10
Figure 6. Shares of World Exports of Wheat and Wheat Products,
2006/2007F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Figure 7. Shares of World Exports of Rice, 2007F . . . . . . . . . . . . . . . . . . . . . . . 14
Figure 8. Shares of World Exports of Corn, 2006/2007F . . . . . . . . . . . . . . . . . . 16
Figure 9. Shares of World Exports of Soybeans, 2005/2006E . . . . . . . . . . . . . . 18
Figure 10. Shares of World Exports of Cotton, 2005/2006E . . . . . . . . . . . . . . . 20
Figure 11. Shares of World Exports of Beef and Veal, 2006F . . . . . . . . . . . . . . 22
Figure 12. Shares of World Pork Exports, 2006F . . . . . . . . . . . . . . . . . . . . . . . . 24
Figure 13. Shares of World Poultry Meat Exports, 2006F . . . . . . . . . . . . . . . . . 26
Figure 14. Shares of World Nonfat Dry Milk Exports, 2006F . . . . . . . . . . . . . . 28
Figure 15. Shares of World Cheese Exports, 2006F . . . . . . . . . . . . . . . . . . . . . . 30
Figure 16. Shares of World Butter Exports, FY2006F . . . . . . . . . . . . . . . . . . . . 32
Figure 17. Major Agricultural Imports by Commodity, FY2005 . . . . . . . . . . . . 34
Figure 18. Major U.S. Agricultural Imports by Country of Origin,
FY2004-FY2006F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Figure 19. Growth in U.S. Agricultural Exports, FY1992-FY2006F . . . . . . . . . 38
Figure 20. Growth in Agricultural Exports to Asian Markets,
FY1992-FY2006F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

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Figure 21. Growth in Agricultural Exports to North and South America,
FY1992-FY2006F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Figure 22. Expenditures for Market Development, Selected Countries, 2002 . . 44
Figure 23. Producer Support Estimates (PSEs) in Selected OECD Countries . . 46
Figure 24. Producer Support Estimates (PSEs) in Selected Commodities in
the United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Figure 25. Producer Support Estimates (PSEs) Selected Commodities in
the European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
List of Tables
Table 1. U.S. Agricultural Exports and Imports, FY1988-FY2006F . . . . . . . . . . 3
Table 2. U.S. Agricultural Exports: Shares of U.S. Production Exported,
1990-2006F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table 3. U.S. Agricultural Exports of Major Commodities, FY 2005 . . . . . . . . . 7
Table 4. U.S. Agricultural Exports, FY1989-FY2005: Total, Bulk, Consumer-
Ready, and Intermediate Product Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Table 5. Major Country Markets for U.S. Agricultural Exports,
FY2004 - FY2006F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Table 6. Shares of World Exports of Wheat and Wheat Products,
1995/1996 - 2006/2007F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Table 7. Shares of World Exports of Rice, 1995 - 2007F . . . . . . . . . . . . . . . . . . 15
Table 8. Shares of World Exports of Corn, 1995/1996 - 2006/2007F . . . . . . . . . 17
Table 9. Shares of World Exports of Soybeans, 1995/1996 - 2005/2006E . . . . 19
Table 10. Shares of World Exports of Cotton, 1995/1996 - 2004/2005E . . . . . . 21
Table 11. Shares of World Exports of Beef and Veal, 1995-2006F . . . . . . . . . . 23
Table 12. Shares of World Pork Exports, 1994 - 2006F . . . . . . . . . . . . . . . . . . . 25
Table 13. Shares of World Total Poultry Meat Exports, 1994 - 2006F . . . . . . . . 27
Table 14. Shares of World Nonfat Dry Milk Exports, 1994 - 2006F . . . . . . . . . 29
Table 15. Shares of World Cheese Exports, 1994 - 2006F . . . . . . . . . . . . . . . . . 31
Table 16. Shares of World Butter Exports, 1994 - 2006F . . . . . . . . . . . . . . . . . 33
Table 17. Major U.S. Agricultural Imports, FY2005 . . . . . . . . . . . . . . . . . . . . . . 35
Table 18. U.S. Agricultural Imports by Country of Origin,
FY2004 - FY2006F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Table 19. Change in U.S. Agricultural Exports, FY1992 - FY2006F . . . . . . . . 39
Table 20. Change in Agricultural Exports to Asian Markets,
FY1992 - FY2006F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Table 21. Change in Agricultural Exports to North and South America,
FY1992 - FY2006F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Table 22. Expenditures for Market Development, Selected Countries, 2002 . . . 45
Table 23. Producer Support Estimates (PSEs) in Selected OECD Countries . . . 47
Table 24. Producer Support Estimates (PSE) in the United States
by Commodity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Table 25. Producer Support Estimates (PSEs) in the European Union . . . . . . . 51
Table 26. U.S. and EU Government Spending on Agricultural Support,
2003-2006E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Table 27. Agricultural and Trade Policies in the United States and the
European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Table 28. Agricultural and Trade Policies in Canada and Australia . . . . . . . . . . 57

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U.S. Agricultural Trade: Trends,
Composition, Direction, and Policy
U.S. Agricultural Exports, Imports, and Trade Balance
! U.S. agricultural exports in FY2006 are forecast by the U.S.
Department of Agriculture (USDA) to be $67 billion, a record high.
! Agricultural imports also are forecast at a record $65 billion in
FY2006.
! The U.S. agricultural trade surplus — $2 billion in FY2006 — has
declined by almost $12 billion since FY2001.
Figure 1. U.S. Agricultural Exports and Imports, FY1988-FY2006F
70
60
Exports
50
40
Imports
30
20
10
0
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006F
Source: U.S. Department of Agriculture. Economic Research Service. F = Forecast

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CRS-2
Table 1. U.S. Agricultural Exports and Imports,
FY1988-FY2006F
($ billion)
Year
Exports
Imports
Balance
1988
35.3
21.0
14.3
1989
39.6
21.5
18.1
1990
40.2
22.6
17.7
1991
37.6
22.6
15.0
1992
42.4
24.3
18.1
1993
42.6
24.4
18.1
1994
43.9
26.6
17.3
1995
54.6
29.9
24.7
1996
59.8
32.6
27.2
1997
57.3
35.8
21.5
1998
53.6
36.8
16.8
1999
49.1
37.3
11.8
2000
50.7
38.9
11.9
2001
52.7
39.0
13.7
2002
53.3
41.0
12.3
2003
56.0
45.7
10.3
2004
62.4
52.7
9.7
2005
62.4
57.7
4.7
2006F
67.0
65.0
2.0
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S.
Agricultural Trade, AES-50, May 24, 2006, available at [http://usda.mannlib.cornell.edu/
reports/erssor/trade/aes-bb/2006/aes50.pdf].
F= Forecast

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CRS-3
Shares of U.S. Production Exported
! USDA estimates that production from one-third of harvested acreage
is exported.
! In FY2005, 48% of the U.S. wheat crop was exported, while 18%
of the U.S. corn crop moved into world markets. Corn’s share of
exports has declined as domestic demand for corn for ethanol has
grown.
! The export shares of soybeans and cotton in FY2004 were 35% and
63% respectively.
! Beef exports grew rapidly in the 1990s, but the U.S. discovery of a
cow infected with bovine spongiform encephalopathy (BSE), or
“mad cow” disease, in 2003 resulted in a precipitous decline in beef
exports.
Figure 2. U.S. Agricultural Exports: Share of U.S. Production
Exported, 1990-2006F
80
Wheat
Corn
70
Cotton
Soybeans
60
Beef
50
40
30
20
10
0
1990-1995 1996-2001
2002
2003
2004
2005
2006F
Source: U.S. Department of Agriculture. Economic Research Service.

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CRS-4
Table 2. U.S. Agricultural Exports: Shares of U.S. Production
Exported, 1990-2006F
(percent)
Year Wheat
Corn
Cotton
Soybeans
Beefa
1990
39.2
21.7
63.1
32.4
4.4
1991
64.7
21.2
50.3
28.9
5.2
1992
54.9
17.5
38.1
63.3
5.7
1993
52.9
20.9
32.1
58.4
5.5
1994
51.3
20.9
42.9
31.5
6.6
1995
56.8
30.1
43.0
62.9
7.2
1996
44.0
19.5
36.5
39.1
7.4
1997
41.9
16.3
39.9
32.5
8.4
1998
40.9
20.3
30.9
29.4
8.4
1999
47.4
20.5
40.0
36.7
9.1
2000
49.5
22.6
43.4
34.2
9.7
2001
49.4
20.0
39.2
36.1
9.1
2002
52.2
17.7
54.2
36.8
8.9
2003
50.6
19.0
69.1
37.9
9.5
2004
48.5
15.1
75.3
36.1
1.9
2005
48.0
17.9
62.0
35.3
2.8
2006
48.0
18.4
71.2
29.2
3.5
Source: Calculated by CRS using data from the U.S. Department of Agriculture’s Foreign
Agricultural Service World Production, Market, and Trade Reports, available at
[http://www.fas.usda.gov/currwmt.asp].
aBased on Calendar year.

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CRS-5
Composition of U.S. Agricultural Exports:
Major Commodity Components
! The United States exports a wide range of agricultural products,
including horticultural products, livestock products and poultry, and
field crops.
! Horticultural product exports (fruits, vegetables, tree nuts, and their
preparations) — valued at $14.5 billion — were the leading
commodity components of U.S. agricultural exports in FY2005.
! Oilseeds (mainly soybeans) and oilseed products — valued at $11
billion — comprise the second largest category of U.S. agricultural
exports in FY2005.
! Livestock and poultry products together amounted to $9.6 billion in
FY2005.
! Feed grains, wheat and products, and cotton account for a substantial
portion of U.S. agricultural exports.
Figure 3. U.S. Agricultural Exports of Major Commodities, FY2005
Horticultural Products
14.5
Oilseeds and Products
11
Livestock Products
7.4
Feed Grains
5.3
Wheat and Prods.
4.2
Cotton
3.9
Poultry/Prods.
3
Tobacco
1
0
2
4
6
8
10
12
14
16
$ Billion
Source: U.S. Department of Agriculture. Economic Research Service. F = Forecast

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CRS-6
Table 3. U.S. Agricultural Exports of Major Commodities,
FY 2005
Commodity
($ Billion)
Horticultural Products
14.5
Oilseeds and Products
11.0
Livestock Products
7.4
Feed Grains
5.3
Wheat and Prods.
4.2
Cotton
3.9
Poultry/Prods.
3.0
Tobacco
1.0
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S.
Agricultural Trade, AES-50, May 24, 2006, available at
[http://usda.mannlib.cornell.edu/reports/erssor/trade/aes-bb/2006/aes50.pdf].

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CRS-7
Composition of U.S. Agricultural Exports: Bulk,
Consumer-Ready, and Intermediate Product Exports
! Bulk agricultural exports include products like wheat, coarse grains,
cotton, and soybeans.
! Intermediate products have been processed to some extent and
include products like wheat flour, soybean oil, and feeds.
! Consumer-ready includes both processed products such as breakfast
cereals and products such as fresh fruits and vegetables.
! Since FY1991, the total of high-value (intermediate and
consumer-ready) products has exceeded the value of bulk
agricultural exports.
! In FY2005, high-value exports accounted for 62% of total U.S.
agricultural exports and bulk exports for 38%.
Figure 4. U.S. Agricultural Exports, FY1989-FY2005 Bulk, Consumer
Ready, and Intermediate Product Exports
70
60
50
40
30
20
10
0
1989
1991
1993
1995
1997
1999
2001
2003
2005
Intermediate
Consumer-Oriented
Bulk
Source: U.S. Department of Agriculture. Foreign Agricultural Service.

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CRS-8
Table 4. U.S. Agricultural Exports, FY1989-FY2005: Total, Bulk,
Consumer-Ready, and Intermediate Product Exports
($ thousands)
% of
Consumer-
% of
Inter-
% of
Year Total
Bulk
Total
Oriented
Total
mediate
Total
1989
40,022,209
22,813,257
57.0
8,459,788
21.1
8,749,164
24.4
1990
40,341,284
21,785,568
54.0
9,821,323
24.3
8,734,393
21.7
1991
37,858,478
17,693,289
46.7
11,511,714
30.4
8,653,475
22.9
1992
42,546,690
19,511,471
45.9
13,610,605
32.0
9,424,615
22.1
1993
43,050,541
19,073,156
44.3
14,800,983
34.4
9,176,401
21.3
1994
43,855,070
17,934,832
40.9
16,377,119
37.3
9,573,120
21.8
1995
54,599,280
24,443,986
44.8
18,737,945
34.3
11,417,349
20.9
1996
59,776,115
28,778,521
48.1
20,073,106
33.6
10,924,488
18.3
1997
57,294,470
24,247,161
42.3
20,787,711
36.3
12,259,598
21.4
1998
53,648,322
20,922,324
39.0
20,561,238
38.0
12,164,761
22.7
1999
49,108,033
18,591,806
37.9
19,830,681
40.4
10,685,545
21.8
2000
50,743,841
18,579,841
36.6
21,396,153
42.2
10,767,846
21.2
2001
52,698,239
18,435,158
35.0
22,429,565
42.6
11,833,515
22.5
2002
53,291,233
19,210,010
35.9
21,617,074
40.6
12,554,149
23.6
2003
55,986,644
21,223,290
37.9
22,638,507
40.4
12,124,847
21.7
2004
62,368,052
26,903,096
43.1
23,244,157
37.3
12,220,799
19.6
2005
62,369,349
23,603,104
37.8
26,129,866
41.9
12,636,379
20.3
Source: Data in this table are compiled from U.S. Department of Agriculture, Foreign
Agricultural Service data bases, available at [http://www.fas.usda.gov/scriptsw/bico/
bico_frm.asp].

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CRS-9
Major Country Markets for U.S. Agricultural Exports
! Canada and Mexico, both U.S. partners in the North American Free
Trade Agreement (NAFTA), are the first- and second-largest
markets for U.S. agricultural exports. Total U.S. agricultural exports
to these two countries in FY2006 is forecast to be almost $22 billion.
! Japan, which was the number one U.S. destination for agricultural
products for many years, has dropped to third place.
! China, recently acceded to the World Trade Organization, is forecast
to become the fourth-largest market for U.S. agricultural products in
FY2006, ahead of the EU-25.
! Other Asian markets — Taiwan and South Korea — are the sixth-
and seventh-largest destinations for U.S. agricultural products.
Figure 5. Major Country Markets for U.S. Exports FY2004-FY2006F
11.4
Canada
10.4
9.5
10.4
Mexico
9.2
8.4
8
Japan
7.8 8.5
6.8
China
5.3 6.1
6.6
EU*
6.9
6.8
2.5
Taiwan
2.2
2.1
0
2
4
6
8
10
12
$ Billions
2006F
2005
2004
*Includes the former EU-15 plus 10 new states which acceded in May 2004.
Source: U.S. Department of Agriculture. Economic Research Service. F = Forecast

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CRS-10
Table 5. Major Country Markets for U.S. Agricultural Exports,
FY2004 - FY2006F
($ billion)
Country
2004
2005
2006F
Canada
9.5
10.4
11.4
Mexico
8.4
9.2
10.4
Japan
8.5
7.8
8.0
China
6.1
5.3
6.8
EU
6.8
6.9
6.6
Taiwan
2.1
2.2
2.5
South Korea
2.8
2.2
2.3
Russia
0.7
0.9
1.1
Turkey
0.9
1.0
0.9
Hong Kong
1.0
0.9
0.9
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S.
Agricultural Trade, AES-50, May 24, 2006, available at [http://usda.mannlib.cornell.edu/
reports/erssor/trade/aes-bb/2006/aes50.pdf].
F=Forecast

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CRS-11
World Market Shares: Crops
! Wheat: Although it has lost export market share over the last
decade, the United States remains the major supplier of wheat and
wheat products to the world market, with a forecast share of 25% in
marketing year 2006/2007. Australia, Canada, and the EU-25 are
major competitors in this market (see Figure 6 and Table 6).
! Rice: Thailand (30% forecast for 2007) is the world’s dominant rice
exporter; but Vietnam (17%) has emerged as a major competitor.
India’s export market share in 2007 is forecast to be 14% (see
Figure 7 and Table 7).
! Corn: The United States dominates the world market for corn with
a 2007 forecast export share of 70% (see Figure 8 and Table 8).
! Soybeans: Brazil has overtaken the United States as the world’s
main supplier of soybeans with a 2007 forecast share of 39%. The
U.S. share has declined from 73% in 1995/1996 to a forecast of 37%
in 2005/2006 (see Figure 9 and Table 9).
! Cotton: U.S. cotton exports are estimated to be 39% of the world
total in 2005/2006. Competitors include Australia (7%), Uzbekistan
(11%), and Franc-Zone West African countries (11%) (see Figure
10 and Table 10).
Figure 6. Shares of World Exports of Wheat and Wheat
Products, 2006/2007F
Australia
Canada
17%
16%
Argentina
9%
European Union
15%
Rest of World
Kazakhstan, Rep.
15%
4%
United States
23%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

---

CRS-12
Table 6. Shares of World Exports of Wheat and Wheat
Products, 1995/1996 - 2006/2007F
(percent)
Country
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
Argentina
4.5
10.1
9.0
9.0
9.8
11.0
Australia
12.4
18.0
15.5
15.8
15.2
16.7
Canada
17.4
18.2
20.5
14.1
17.2
16.8
EU-25
13.5
17.9
15.5
14.3
15.5
14.7
Kazakhstan, Rep.
4.5
2.3
2.6
2.2
5.8
3.5
United States
34.3
27.1
28.1
28.5
26.1
26.9
Rest of World
13.3
6.5
8.7
16.1
10.5
10.3
Country
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
E
F
Argentina
10.5
5.7
7.0
13.5
7.2
10.5
Australia
14.9
10.0
14.4
15.8
16.0
19.0
Canada
15.1
8.5
14.9
15.1
16.0
18.0
EU-25
12.9
18.1
10.5
14.4
14.5
16.5
Kazakhstan, Rep.
3.6
5.7
3.9
2.7
3.0
4.5
United States
23.7
20.8
30.9
28.5
27.5
25.5
Rest of World
19.3
31.2
18.4
23.0
30.4
16.7
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Grain: World Markets and
Trade, FG 07-06, July 2006, available at [http://www.fas.usda.gov/grain/circular/2006/07-06/all.pdf].
July-June marketing year.
E = Estimate
F = Forecast

---

CRS-13
Figure 7. Shares of World Exports of Rice, 2007F
Pakistan
9%
India
Thailand
14%
30%
China
3%
Rest of World
15%
United States
12%
Vietnam
17%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

---

CRS-14
Table 7. Shares of World Exports of Rice, 1995 - 2007F
(percent)
Country
1995
1996
1997
1998
1999
2000
2001
China
15.2
1.4
5.0
13.7
10.9
12.9
7.4
India
20.2
18.2
10.4
16.5
11.0
6.3
7.8
Pakistan
7.6
8.6
10.5
6.6
7.4
8.9
9.7
Thailand
28.3
27.0
28.0
23.3
26.8
28.7
30.8
United States
14.6
13.4
12.2
11.6
10.6
12.5
10.6
Vietnam
11.0
15.5
17.3
13.8
18.3
14.8
14.2
Rest of World
18.3
16.0
16.8
14.4
13.8
16.0
19.3
Country
2002
2003
2004
2005
2006E
2007F
China
7.1
9.4
3.7
2.3
2.9
2.9
India
23.9
16.0
11.7
15.7
13.8
14.4
Pakistan
5.8
7.1
7.3
10.0
10.2
8.6
Thailand
26.0
27.4
37.4
25.4
26.6
29.6
United States
11.8
13.9
11.4
13.4
12.0
12.2
Vietnam
11.7
13.8
15.8
18.1
18.9
16.9
Rest of World
12.0
12.4
16.4
15.1
15.6
15.5
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Grain: World
Markets and Trade, FG 07-06, July 2006, available at [http://www.fas.usda.gov/grain/
circular/2006/07-06/all.pdf].
July-June marketing year.
E = Estimate
F = Forecast

---

CRS-15
Figure 8. Shares of World Exports of Corn, 2006/2007F
South Africa, Rep.
1%
Argentina
14%
United States
70%
Rest of World
10%
China
5%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

---

CRS-16
Table 8. Shares of World Exports of Corn,
1995/1996 - 2006/2007F
(percent)
Country
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
Argentina
8.9
11.8
16.8
8.8
9.2
12.5
China
.22
2.4
7.0
3.5
9.5
7.0
South Africa,
1.9
2.4
1.7
.90
.83
1.4
Rep.
United States
66.8
56.8
51.0
59.7
54.2
53.0
Rest of World
22.2
24.7
23.6
27.1
26.3
25.8
Country
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
E
F
Argentina
8.9
12.5
10.5
14.6
13.8
14.1
China
8.4
14.7
7.5
6.0
6.6
5.1
South Africa,
1.2
1.1
.81
1.5
1.8
.64
Rep.
United States
52.3
44.5
52.4
51.4
68.2
70.0
Rest of World
29.0
27.1
28.8
26.5
9.6
10.1
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Grain: World Markets and
Trade, FG 07-06, July 2006, available at [http://www.fas.usda.gov/grain/circular/2006/07-06/all.pdf].

October-September marketing year.
E = Estimate
F = Forecast

---

CRS-17
Figure 9. Shares of World Exports of Soybeans, 2005/2006E
Brazil
40%
Argentina
16%
Rest of World
3%
Paraguay
4%
United States
37%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
E = Estimate

---

CRS-18
Table 9. Shares of World Exports of Soybeans,
1995/1996 - 2005/2006E
(percent)
Country
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
Argentina
6.9
2.3
8.0
8.3
8.9
13.2
Brazil
10.1
10.8
21.6
22.6
23.9
27.5
Paraguay
4.7
6.7
5.9
6.3
4.5
4.6
United States
72.8
75.0
58.6
55.4
56.8
49.9
Rest of
5.5
5.1
5.9
7.4
5.9
4.8
World
Country
2001/02
2002/03
2003/04
2004/05
2005/06E
Argentina
13.9
14.1
12.1
14.3
15.8
Brazil
30.4
32.0
35.6
31.0
39.2
Paraguay
4.4
5.2
5.0
4.4
4.0
United States
46.4
46.1
43.0
46.3
36.9
Rest of World
4.6
2.6
4.4
2.8
3.1
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Oilseeds: World
Market and Trade, FOP 7 - 06, July 2006, available at
[http://www.fas.usda.gov/oilseeds/circular/2006/06-07/FULL06July.pdf].
Marketing year.
E = Estimate

---

CRS-19
Figure 10. Shares of World Exports of Cotton, 2005/2006E
United States
Franc-Zone Africa*
39%
11%
Australia
7%
Uzbekistan
11%
Rest of World
32%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
E = Estimate
* Includes Benin, Burkina, Cameroon, CAR, Chad, Cote d'Ivoire, Mali, Niger, Senegal and Togo.

---

CRS-20
Table 10. Shares of World Exports of Cotton,
1995/1996 - 2004/2005E
(percent)
Country
1995/96
1996/97
1997/98
1998/99
1999/00
Australia
5.3
8.9
10.1
10.1
11.8
Franc-Zone Africaa
10.1
12.3
13.5
13.5
13.7
United States
27.6
25.6
28.1
28.1
24.7
Uzbekistan
16.3
17.0
17.1
16.1
15.0
Rest of World
7.2
36.3
31.0
37.6
34.8
Country
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
E
Australia
14.8
10.8
8.7
6.5
5.8
7.4
Franc-Zone
2.0
2.3
2.4
2.9
11.9
10.7
Africaa
United
25.5
38.1
39.1
41.6
41.4
39.1
States
Uzbekistan
12.8
11.8
11.5
8.9
11.4
11.0
Rest of
44.8
37.0
38.2
40.1
29.5
31.5
World
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Cotton: World
Markets and Trade, FC-07-06, July 2006, available at [http://www.fas.usda.gov/cotton/
circular/2006/07/CottonWMT.pdf].
a Includes Benin, Burkina, Cameroon, CAR, Chad, Cote d’Ivoire, Mali, Niger, Senegal and
Togo.
Marketing year.
E = Estimate

---

CRS-21
World Market Shares: Livestock and Dairy
! Beef: Brazil, with 26% (forecast) of world exports in 2006, has
emerged as the world’s largest supplier of beef to world markets.
The U.S. share of world beef exports, 18% in 2003, has declined to
a forecast 6% in 2006, because of mad cow disease.
! Pork: The EU retains its position as the world’s largest exporter of
pork (29% forecast for 2006), but has lost market share to the United
States and Canada. The U.S. share of world pork exports is forecast
to be 25% in 2006.
! Poultry: Brazil is the world’s leading supplier of poultry meat (41%
forecast for 2006). The United States with 34% of world exports and
the EU (10%) have lost market share to Brazil in recent years.
! Dairy Products: In 2006, Australia and New Zealand were the
leading suppliers of nonfat dry milk (NFD) to world markets,
followed by the United States and the EU. The EU dominates the
world market for cheese, while New Zealand is the largest exporter
of butter.
Figure 11. Shares of World Exports of Beef and Veal, 2006F
Brazil
26%
United States
6%
European Union
3%
Argentina
7%
Australia
20%
Rest of World
New Zealand
28%
9%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

---

CRS-22
Table 11. Shares of World Exports of Beef and Veal, 1995-2006F
(percent)
Country
1995
1996
1997
1998
1999
2000
Argentina
10.0
9.1
8.0
5.4
6.3
6.2
European Union
17.9
17.7
15.7
12.6
14.8
9.5
United States
15.9
16.5
17.6
18.4
19.0
19.5
Brazil
5.6
5.3
5.3
7.0
8.1
8.5
Australia
21.0
19.7
20.9
23.5
22.1
23.2
New Zealand
9.7
10.0
9.7
10.0
7.8
8.4
Rest of World
20.0
17.5
22.2
23.3
22.0
24.6
Country
2001
2002
2003
2004
2005P
2006F
Argentina
3.0
5.6
6.1
9.6
10.8
7.3
European Union
8.8
7.8
6.2
5.5
3.5
3.2
United States
18.1
17.8
18.1
3.2
4.4
6.4
Brazil
13.2
14.1
18.7
25.1
26.5
26.1
Australia
24.7
21.9
20.1
21.4
20.1
20.3
New Zealand
8.7
7.8
8.9
9.3
8.4
9.1
Rest of World
23.5
25.0
22.0
25.9
26.3
28.1
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Livestock and
Poultry: World Markets and Trade, DL&P 1-06, March 2006, available at
[http://www.fas.usda.gov/dlp/circular/2006/06-03LP/dlp06_03LP.pdf].
P = Preliminary
F = Forecast

---

CRS-23
Figure 12. Shares of World Pork Exports, 2006F
United States
25%
Canada
22%
Rest of World
European Union
19%
29%
China, Peoples Republic of
6%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

---

CRS-24
Table 12. Shares of World Pork Exports, 1994 - 2006F
(percent)
Country
1994
1995
1996
1997
1998
1999
Canada
13.8
15.4
14.6
14.9
15.5
16.8
United States
11.4
15.4
17.3
16.8
20.0
17.6
European Uniona
39.7
30.5
27.5
34.4
35.9
42.0
Hungary
1.9
2.3
4.0
4.8
3.9
4.0
Poland
1.2
3.5
6.3
10.1
7.9
7.1
China, Peoples
8.3
9.9
7.5
5.6
5.1
2.3
Republic of
Taiwan
15.1
16.4
15.1
—
—
—
Rest of World
8.6
6.8
8.3
11.3
11.8
10.4
Country
2000
2001
2002
2003
2004
2005P
2006F
Canada
19.3
22.6
23.2
24.2
20.8
21.6
22.0
United States
17.1
22.0
19.7
19.4
21.1
24.1
24.7
European
43.1
35.2
31.1
30.7
31.3
27.5
28.7
Uniona
Hungary
4.2
—
—
—
N/A
N/A
N/A
Poland
4.7
—
—
—
N/A
N/A
N/A
China, Peoples
2.1
4.3
5.8
7.0
8.2
6.6
5.9
Republic of
Taiwan
—
—
—
—
—
—
—
Rest of World
10.0
15.9
20.1
18.8
18.7
20.3
18.7
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Livestock and
Poultry: World Markets and Trade, DL&P 1-06, March 2006, available at
[http://www.fas.usda.gov/dlp/circular/2006/06-03LP/dlp06_03LP.pdf].
a Hungary and Poland joined the EU-25 in May 2004.
P= Preliminary
F= Forecast
— = Less than 0.1%

---

CRS-25
Figure 13. Shares of World Poultry Meat Exports, 2006F
United States
34%
Brazil
Rest of World
41%
9%
China (PRC)
5%
European Union
10%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

---

CRS-26
Table 13. Shares of World Total Poultry Meat Exports,
1994 - 2006F
(percent)
Country
1994
1995
1996
1997
1998
1999
2000
United States
40.4
43.2
44.4
49.4
47.6
47.3
45.6
Brazil
13.4
9.5
11.1
15.2
13.8
16.4
17.8
European
21.4
19.4
17.1
17.2
18.0
16.4
17.3
Union
China (PRC)
5.2
7.2
7.1
7.7
7.3
7.9
9.5
Rest of World
19.5
20.6
20.3
10.6
13.3
11.9
9.8
Country
2001
2002
2003
2004
2005P
2006F
United States
45.1
37.9
36.9
35.9
35.0
34.1
Brazil
21.9
27.4
31.7
40.0
41.0
41.2
European Union
13.7
15.2
12.6
13.5
11.1
10.2
China (PRC)
8.7
7.6
6.4
4.0
5.0
5.3
Rest of World
10.6
11.8
12.5
6.7
8.0
9.2
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Livestock and
Poultry: World Markets and Trade, DL&P 1-06, March 2006, available at
[http://www.fas.usda.gov/dlp/circular/2006/06-03LP/dlp06_03LP.pdf].
P= Preliminary
F= Forecast

---

CRS-27
Figure 14. Shares of World Nonfat Dry Milk Exports, 2006F
European Union
17%
United States
21%
Australia
14%
New Zealand
19%
Rest of World
29%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

---

CRS-28
Table 14. Shares of World Nonfat Dry Milk Exports,
1994 - 2006F
(percent)
Country
1994
1995
1996
1997
1998
1999
Canada
3.9
3.8
4.6
3.1
3.9
3.8
United States
14.4
14.9
4.0
11.9
12.0
20.3
European Union
21.1
34.7
36.7
24.0
16.9
20.6
Polanda
13.1
8.8
10.0
11.4
11.7
7.8
Australia
20.7
16.9
21.7
20.9
11.4
22.5
New Zealand
17.7
15.0
19.5
21.9
22.7
19.2
Rest of World
9.0
5.4
10.0
6.9
9.8
5.7
Country
2000
2001
2002
2003
2004
2005P
2006F
Canada
2.6
4.8
4.7
3.1
1.4
1.5
.30
United States
11.7
9.9
12.0
12.0
19.8
27.9
24.4
European Union
37.4
29.4
25.5
28.9
24.2
20.9
19.6
Polanda
—
—
—
—
—
—
—
Australia
20.9
22.5
22.1
16.5 16.1
16.2
16.9
New Zealand
14.5
20.2
23.7
26.8
26.2
20.6
22.1
Rest of World
12.9
13.2
12.0
12.7
12.3
14.0
33.6
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Dairy: World
Markets and Trade, FD 1-06, July 2006, [http://www.fas.usda.gov/dlp/circular/
2006/06-07Dairy/dairy06_07.pdf].
a Poland joined the European Union in 2004.
P= Preliminary
F= Forecast

---

CRS-29
Figure 15. Shares of World Cheese Exports, 2006F
European Union
39%
New Zealand
21%
Rest of World
3%
Canada
1%
Argentina
5%
United States
Australia
6%
16%
Ukraine
10%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

---

CRS-30
Table 15. Shares of World Cheese Exports, 1994 - 2006F
(percent)
Country
1994
1995
1996
1997
1998
1999
2000
European Union
60.3
56.7
57.3
51.0
46.2
42.2
45.2
New Zealanda
15.0
17.4
20.4
25.0
25.6
26.9
23.7
Australiab
10.6
11.5
13.1
13.3
16.6
19.3
20.9
Ukraine
0.5
0.6
0.4
0.2
0.4
0.7
1.1
United States
2.7
2.9
3.8
4.0
4.1
4.3
4.4
Argentina
1.4
1.3
1.3
2.0
1.9
2.2
2.1
Canada
0.9
1.4
1.8
2.4
3.0
2.8
1.7
Rest of World
8.5
8.2
2.0
2.0
2.2
1.7
0.9
Country
2001
2002
2003
2004
2005P
2006F
European Union
44.7
44.6
43.6
41.6
39.7
38.5
New Zealanda
23.1
23.9
24.6
23.3
21.5
21.2
Australiab
20.2
18.8
17.5
17.1
18.4
15.6
Ukraine
2.9
3.2
5.2
7.6
8.9
10.4
United States
4.9
4.7
4.4
4.9
4.7
5.6
Argentina
1.7
2.2
1.9
2.5
3.6
5.2
Canada
1.8
1.5
0.9
0.9
0.8
1.0
Rest of World
0.9
1.0
1.9
2.2
2.4
2.5
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Dairy: World
Markets and Trade, FD 1-06, July 2006,
[http://www.fas.usda.gov/dlp/circular/2006/06-07Dairy/dairy06_07.pdf].
a Year ending May 31 of the year shown.
b Year ending June 30 of the year shown.
P= Preliminary
F= Forecast

---

CRS-31
Figure 16. Shares of World Butter Exports, FY2006F
New Zealand
46%
Rest of World
3%
United States
1%
Canada
3%
European Union
Ukraine
35%
4%
Australia
9%
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
F = Forecast

---

CRS-32
Table 16. Shares of World Butter Exports, 1994 - 2006F
(percent)
Country
1994
1995
1996
1997
1998
1999
New Zealanda
38.7
35.3
39.1
42.1
50.2
47.7
European Union
27.9
27.7
23.6
29.2
26.8
27.5
Australiab
13.7
12.6
12.3
14.8
16.7
20.0
Ukraine
3.3
10.2
15.6
7.9
1.6
1.4
Canada
0.3
0.9
2.1
1.6
1.9
1.9
United States
13.7
9.5
3.1
2.4
0.5
0.3
Rest of World
2.5
3.9
4.1
2.0
2.2
1.2
Country
2000
2001
2002
2003
2004
2005P
2006F
New Zealanda
47.5
46.7
47.5
46.1
44.2
39.5
45.7
European Union
26.0
26.4
29.9
35.5
39.2
42.5
34.6
Australiab
19.5
16.6
16.8
12.7
8.3
8.8
9.3
Ukraine
4.4
7.1
2.0
2.1
4.6
3.8
4.3
Canada
1.4
2.2
2.3
1.4
1.9
2.5
2.7
United States
0.6
0.0
0.4
1.2
0.9
1.0
0.7
Rest of World
0.7
1.1
1.1
1.0
0.9
2.0
2.6
Source: U.S. Department of Agriculture. Foreign Agricultural Service, Dairy: World
Markets and Trade, FD 1-06, July 2006, [http://www.fas.usda.gov/dlp/circular/
2006/06-07Dairy/dairy06_07.pdf].
a Year ending May 31 of the year shown.
b Year ending June 30 of the year shown.
P= Preliminary
F= Forecast

---

CRS-33
Major U.S. Agricultural Imports
! High-value horticultural products (fruits, vegetables, nuts, wine,
beer, and others) are the largest category of U.S. agricultural imports
— $25.5 billion — in FY2005.
! Other high-value imports include red meats ($5.7 billion), and
oilseeds and products ($2.9 billion).
! Imports of coffee, cocoa, and sugar amounted to $7.7 billion in
FY2005.
Figure 17. Major Agricultural Imports by Commodity, FY2005
Fruits, Nuts & Preps.
7.7
Vegetables & Preps.
7.5
Wine & Malt Beverage
6.7
Red Meats
5.7
Grains and Feeds
4.4
Oilseeds and Products
2.9
Livestock and Products
2.8
Coffee and Products
2.8
Cocoa and Products
2.6
Dairy Products
2.6
Essential Oils
2.3
Sugar and Products
2.3
Nursery and cut flowers
1.4
0
1
2
3
4
5
6
7
8
$ Billions
Source: U.S. Department of Agriculture. Economic Research Service.

---

CRS-34
Table 17. Major U.S. Agricultural Imports, FY2005
($ billions)
Commodity
FY 2005 Imports
Fruits, Nuts & Preps.
7.7
Vegetables & Preps.
7.5
Wine & Malt Beverage
6.7
Red Meats
5.7
Grains and Feeds
4.4
Oilseeds and Products
2.9
Livestock and Products
2.8
Coffee and Products
2.8
Cocoa and Products
2.6
Dairy Products
2.6
Sugar and Products
2.3
Essential Oils
2.3
Nursery and cut flowers
1.4
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S.
Agricultural Trade, AES-50, May 24, 2006, available at [http://usda.mannlib.cornell.edu/
reports/erssor/trade/aes-bb/2006/aes50.pdf].

---

CRS-35
U.S. Agricultural Imports by Country of Origin
! Agricultural imports from the EU-25 and Canada (a NAFTA
partner), each forecast at $13.7 billion in FY2006, make them the
largest suppliers of food and agricultural products to the United
States.
! Agricultural imports from another U.S. NAFTA partner, Mexico, are
forecast to reach $9.9 billion in FY2006.
! Australia (at $2.6 billion) is forecast to be the fourth largest supplier.
! Agricultural imports from Brazil are expected to reach $2.3 billion
in FY2006, making it the United States’ fifth largest supplier of
food and agricultural products to the United States in FY2006.
Figure 18. Major U.S. Agricultural Imports by Country of Origin,
FY2004-FY2006F

---

CRS-36
Table 18. U.S. Agricultural Imports by Country of Origin,
FY2004 - FY2006F
($ billion)
Country
2004
2005
2006F
European Union
11.8
13.2
13.7
Canada
11.3
11.8
13.7
Mexico
7.0
8.1
9.9
Australia
2.4
2.5
2.6
Brazil
1.6
1.8
2.3
New Zealand
1.6
1.6
1.8
Colombia
1.1
1.4
1.5
Indonesia
1.4
1.6
2.0
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S.
Agricultural Trade, AES-50, May 24, 2006, available at
[http://usda.mannlib.cornell.edu/reports/erssor/trade/aes-bb/2006/aes50.pdf].
a Australia, New Zealand, and Papua New Guinea.
F= Forecast

---

CRS-37
Growth in U.S. Agricultural Exports
! Growth in U.S. farm exports to Asia slowed considerably following
a 1997 financial crisis, but have since resumed an upward trend.
! U.S. agricultural exports to the EU have declined from highs of
around $9 billion in the late 1990s to around $6.6 billion forecast for
FY2006.
! Agricultural exports to countries in the former Soviet Union have
declined in value since the 1992 break-up of the USSR.
! Agricultural exports to Latin America, including Mexico, and to
Canada have grown rapidly during the 1990’s because of geographic
proximity, NAFTA, and other factors.
Figure 19. Growth in U.S. Agricultural Exports, FY1992-FY2006F
60.0
50.0
40.0
30.0
20.0
10.0
0
1992
1994
1996
1998
2000
2002
2004
2006F
Canada
Former Soviet Union
Latin America
European Union
Asia
Source: U.S. Department of Agriculture. Economic Research Service. F = Forecast

---

CRS-38
Table 19. Change in U.S. Agricultural Exports,
FY1992 - FY2006F
($ billion)
Former
European
Latin
Year
Asia
Soviet
Canada
Union
Americaa
Union
1992
17.8
7.2
6.5
2.7
4.8
1993
17.8
7.2
6.9
1.6
5.2
1994
19.9
6.6
7.4
1.5
5.3
1995
24.0
8.4
8.2
2.1
5.8
1996
26.0
9.2
9.9
1.7
6.0
1997
23.9
9.0
10.0
2.9
6.6
1998
19.7
8.5
11.3
2.6
7.0
1999
18.5
7.0
10.4
1.4
7.0
2000
19.7
6.4
10.6
1.6
7.5
2001
20.1
6.5
11.6
1.8
8.0
2002
19.5
6.5
11.5
0.9
8.6
2003
21.7
6.3
12.4
0.7
9.1
2004
24.3
6.8
13.6
1.7
9.6
2005
22.5
6.9
14.4
1.2
10.4
2006F
24.1
6.6
16.4
1.2
11.4
Rate of
2.04%
-0.58%
6.36%
-5.26%
5.94%
Growthb
Source: U. S. Department of Agriculture. Economic Research Service, Outlook for U.S.
Agricultural Trade, AES-50, May 24, 2006, available at [http://usda.mannlib.cornell.edu/
reports/erssor/trade/aes-bb/2006/aes50.pdf].
a Including Mexico.
b The rate of growth is the change in U.S. exports from 1992 to 2006F. Calculations were
computed using a compound rate of growth calculator.
F= Forecast

---

CRS-39
Growth in U.S. Agricultural Exports to Asian Markets
! U.S. agricultural exports to Japan, the United States’ third largest
agricultural export market, have declined since 1996.
! U.S. agricultural exports to China have grown rapidly during 1992-
2006. Since 2001, when China became a member of the World
Trade Organization, U.S. agricultural exports to China have more
than tripled as its annual rates of GDP growth have averaged more
than 9%.
! Rapid income growth in Southeast Asia also has stimulated demand
for U.S. agricultural exports since 1992.
! Agricultural exports to South Asia have grown at a little over 1%
since 1992.
Figure 20. Growth in Agricultural Exports to Asian Markets,
FY1992-FY2006F
20.0
15.0
10.0
5.0
0
1992
1994
1996
1998
2000
2002
2004
2006F
China
South Asia
Southeast Asia
Japan
Source: U.S. Department of Agriculture. Economic Research Service. F = Forecast

---

CRS-40
Table 20. Change in Agricultural Exports to Asian Markets,
FY1992 - FY2006F
($ billion)
Southeast
Year
Japan
South Asia
China
Asia
1992
8.4
1.5
0.5
0.7
1993
8.5
1.6
0.6
0.3
1994
9.2
1.8
0.6
0.9
1995
10.5
2.6
1.0
2.4
1996
11.9
3.4
0.7
1.8
1997
10.7
3.1
0.7
1.8
1998
9.5
2.3
0.6
1.5
1999
8.9
2.2
0.5
1.0
2000
9.4
2.6
0.4
1.5
2001
8.9
2.9
0.6
1.9
2002
8.3
2.9
0.8
1.8
2003
8.8
2.9
0.6
3.5
2004
8.5
3.1
0.7
6.1
2005
7.8
3.5
0.7
5.3
2006F
8.0
3.0
0.6
6.8
Rate of
-0.32%
4.73%
1.22%
16.37%
Growtha
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S.
Agricultural Trade, AES-50, May 24, 2006, available at [http://usda.mannlib.cornell.edu/
reports/erssor/trade/aes-bb/2006/aes50.pdf].
a The rate of growth is the change in U.S. exports from 1992 to 2006F. Calculations were
computed using a compound rate of growth calculator.
F= Forecast

---

CRS-41
Growth in Agricultural Exports to North and South America
! Growth in U.S. agricultural trade with Canada and Mexico, both
NAFTA trading partners, and with Latin America has been
particularly strong since 1992.
! U.S. agricultural exports to Canada are forecast to reach $11.4
billion in FY2006.
! U.S. agricultural exports to Mexico are expected to be $10.4 billion
in FY2006.
! U.S. agricultural exports to Latin America (excluding Mexico) are
expected to reach $6 billion in FY2006.
Figure 21. Growth in Agricultural Exports to North and South
America, FY1992-FY2006F
50
40
30
20
10
0
1992
1994
1996
1998
2000
2002
2004
2006F
NAFTA
Mexico
Canada
Latin America ex. Mexico
Source: U.S. Department of Agriculture. Economic Research Service. F = Forecast

---

CRS-42
Table 21. Change in Agricultural Exports to North and
South America, FY1992 - FY2006F
($ billion)
Latin America
Year
Canada
Mexico
NAFTA
ex. Mexico
1992
2.8
4.8
3.7
8.5
1993
3.3
5.2
3.7
8.9
1994
3.2
5.3
4.1
9.4
1995
4.5
5.8
3.7
9.5
1996
4.9
6.6
5.1
11.7
1997
4.9
6.6
5.1
11.7
1998
5.3
7.0
6.0
13.0
1999
4.7
7.0
5.7
12.7
2000
4.3
7.5
6.3
13.8
2001
4.3
8.0
7.3
15.3
2002
4.5
8.6
7.1
15.7
2003
4.8
9.1
7.6
16.7
2004
5.2
9.5
8.4
17.9
2005
5.2
10.4
9.2
19.6
2006F
6.0
11.4
10.4
21.8
Rate of
5.21%
5.94%
7.13%
6.48%
Growth
Source: U.S. Department of Agriculture. Economic Research Service, Outlook for U.S.
Agricultural Trade, AES-50, May 24, 2006, available at [http://usda.mannlib.cornell.edu/
reports/erssor/trade/aes-bb/2006/aes50.pdf].
a The rate of growth is the change in U.S. exports from 1992 to 2006F. Calculations were
computed using a compound rate of growth calculator.
F= Forecast

---

CRS-43
Market Development Programs in Selected Countries
! Most major agricultural exporting countries have programs to
promote agricultural exports and develop markets. Programs
include consumer promotions, market research, technical assistance,
and trade servicing.1
! 37% of the funds for U.S. market development programs are from
the Federal Government; 63% are from commodity groups, trade
associations, cooperatives, or private firms.
! EU countries operate market development/export promotion
programs funded by mandatory producer levies (57% in 2002) and
national budgets (43% in 2002).
! In Australia, the government provided 63% of export market
development funds in 2002 and industry 37%.
! In New Zealand, 99.8% of export market development funds are
provided by industry.
Figure 22. Expenditures for Market Development,
Selected Countries, 2002
377.6
400
352.9
331.4
350
300
250
200
150
100
49.3
50
0
EU Countries
United States
Australia
New Zealand
Industry
Government
Source: Foreign Agricultural Service 2002.
EU Countries include Denmark, France, Germany, Italy, Netherlands, Spain and U.K.
1 Information on spending for foreign country market development programs is from The
Competition in 2002: U.S. and Competitor Expenditures on Export Promotion for
Agricultural, Forestry, and Fishery Products, USDA, Foreign Agricultural Service, August
2004, available at [http://www.fas.usda.gov/cmp/com-study/2002/2002.pdf]

---

CRS-44
Table 22. Expenditures for Market Development,
Selected Countries, 2002
($ millions)
Funding
Country
Total
Government
%
Industry
%
EU Countries
377.6
162.1
42.9
215.5
57.0
United States
331.4
123.4
37.2
208.0
62.8
Australia
49.3
31.1
63.1
18.2
36.9
New Zealand
352.9
0.6
0.2
352.3
99.8
Source: U.S. Department of Agriculture, Foreign Agricultural Service, The Competition in
2002: U.S. and Competitor Expenditures on Export Promotion for Agricultural, Forestry,
and Fishery Products, August 2004, available at [http://www.fas.usda.gov/cmp/
com-study/2002/2002.pdf].

---

CRS-45
Producer Support Estimates (PSEs) in
Selected OECD Countries2
! PSEs measure assistance to producers in terms of the value of
monetary transfers generated by agricultural policy. Transfers are
paid either by consumers or by taxpayers in the form of market price
support, direct payments, or other support. They are a broader
measure of support than direct government subsidies alone (which
are discussed below). PSEs can be expressed in money terms in
aggregate or per unit of production, or in percentage terms.
! PSEs are an indication of the extent to which government policy
supports agricultural producers.
! PSE’s vary considerably among OECD countries. Australia with 5%
is among the lowest, while Korea at 63% and Japan at 56% are
among the highest.
! The EU’s PSE (32%) equals about one-third, and the United States’
(16%) less than one-fifth, of the value of total agricultural
production.
Figure 23. Producer Support Estimates (PSEs) in Selected OECD
Countries
Australia
EU
Japan
Korea
U.S.
70
60
50
40
30
20
10
0
1986-88 2002-2004
2001
2002
2003
2004
2005P
Source: OECD 2006
P = Provisional
2 Agricultural policies in OECD Countries At a Glance, Paris, OECD, 2006.

---

CRS-46
Table 23. Producer Support Estimates (PSEs) in
Selected OECD Countries
(percent)
Country
1986-88
2002-2004
2001
2002
2003
2004
2005 P
Australia
8
4
3
5
4
5
5
EU
41
34
32
34
36
33
32
Japan
61
58
57
58
59
56
56
Korea
70
63
62
65
61
63
63
U.S.
22
17
23
18
15
16
16
Source: Organization for Economic Co-operation and Development (OECD), Agricultural
policies in OECD Countries At a Glance, 2006 edition, [http://www.oecd.org/document/4/
0,2340,en_2649_201185_36967364_1_1_1_1,00.html].
P = Provisional

---

CRS-47
Producer Support Estimates (PSEs) in the United States
and the European Union3
! The PSE for all agricultural products in the EU declined from 41%
in 1986-88, and was 32% in 2005.
! The PSE for all agricultural products in the United States declined
from 22% in 1986-88 to 16% in 2005.
! Products most heavily supported in the EU are beef and veal, sugar,
poultry, milk, wheat, and rice.
! Products most heavily supported in the United States are milk, sugar,
wheat, and rice.
Figure 24. Producer Support Estimates (PSEs) in Selected
Commodities in the United States
70
60
50
40
30
20
10
0
1986-88
2002-2004
2002
2003
2004P
Wheat
Oilseeds
Sugar
Milk
Beef and Veal
Source: OECD 2004
P = Provisional
3 PSEs for individual commodities are from Agricultural Policies in OECD Countries:
Monitoring and Evaluation, Paris, OECD, 2005.

---

CRS-48
Table 24. Producer Support Estimates (PSE) in the United
States by Commodity
(percent)
1986-88
Products
2002-2004
2002
2003
2004P
(Average)
Wheat
49
30
36
22
32
Corn
38
20
20
13
27
Rice
52
33
50
31
18
Oilseeds
8
18
14
16
24
Sugar
58
57
53
62
56
Milk
41
40
43
38
39
Beef and Veal
6
4
4
4
4
Pork
4
4
4
4
4
Poultry
13
4
4
4
4
All Products
22
17
18
15
18
Source: Organization for Economic Cooperation and Development (OECD), Agricultural
Policies in OECD Countries: Monitoring and Evaluation, 2005 edition,
[http://www.oecd.org/document/9/0,2340,en_2649_201185_35015433_1_1_1_1,00.html].
P = Provisional

---

CRS-49
Figure 25. Producer Support Estimates (PSEs) Selected
Commodities in the European Union
80
70
60
50
40
30
20
10
0
1986-88
2002-2004
2002
2003
2004P
Wheat
Oilseeds
Sugar
Milk
Beef and Veal
Source: OECD 2004
P = Provisional

---

CRS-50
Table 25. Producer Support Estimates (PSEs) in
the European Union
(percent)
1986-88
Products
2002-2004
2002
2003
2004P
(Average)
Wheat
51
43
43
48
39
Corn
53
39
30
44
43
Rice
60
35
34
32
39
Oilseeds
59
37
36
39
35
Sugar
60
60
52
64
65
Milk
70
40
45
43
30
Beef and Veal
55
73
74
76
68
Pork
16
24
21
26
24
Poultry
24
40
38
35
46
All Products
41
34
34
36
33
Source: Organization for Economic Cooperation and Development (OECD), Agricultural
Policies in OECD Countries: Monitoring and Evaluation, 2005 edition,
[http://www.oecd.org/document/9/0,2340,en_2649_201185_35015433_1_1_1_1,00.html].
P = Provisional

---

CRS-51
Domestic Support and Export Subsidies in the
United States and the European Union
! The governments of both the United States and the European Union
provide income support to farmers and subsidize agricultural
exports. EU direct subsidies in 1998 were more than four times
larger than direct U.S. subsidies; in 1999 EU subsidies were a little
over twice as large.
! In the United States, domestic support and export subsidies are
concentrated on wheat, rice, feed grains, and cotton.
! U.S. support increased by 80% in 1999 because of a large emergency
assistance program for farmers and because low prices triggered
increased outlays for marketing assistance and loan deficiency
payments.
! The European Union provides domestic support and export subsidies
to a broader range of products including grains, sugar, oils and fats,
dairy products, meat, poultry and eggs, and fruits and vegetables.

---

CRS-52
Table 26. U.S. and EU Government Spending on Agricultural
Support, 2003-2006E
($ billion)
European Union
2004
2005
2006E
Export Subsidies a
3.629
4.356
3.962
Domestic Support b
40.891
44.056
26.486
Total
44.520
48.412
30.448
United States
2004
2005
2006E
Export Subsidies c
0.610
-1.441
0.265
Domestic Support d
8.616
19.777
18.982
Total
9.226
18.336
19.247
Source: U.S. Department Of Agriculture, Economic Research Service Table 35 — CCC
N e t O u t l a y s b y C o m m o d i t y a n d F u n c t i o n a v a i l a b l e a t
[http://www.ers.usda.gov/Publications/AgOutlook/AOTables/] and Commission of the
European Union, Agriculture in the European Union, Statistical and economic information
2005 available at [http://ec.europa.eu/agriculture/agrista/2005/table_en/index.htm].
E = Estimate
a EU export subsidies include export refunds, but exclude food aid.
b EU domestic support includes expenditures for intervention purchasing and other price
support measures, production and processing subsidies, set-aside and income support,
monetary compensatory amounts, and stock depreciation. Estimates 2006 spending
excludes spending for rural development and environment.
c U.S. export subsidies include net outlays of the Community Credit Corporation for the
Export Enhancement Program, Dairy Export Incentive Program, Export Credit
Guarantee Programs, Market Access Program, Technical Assistance to Emerging
Markets, Foreign Market Development Cooperative Program, and Quality Samples
Program. Foreign food aid is excluded. Minus (-) indicates a net receipt (excess of
repayments or other receipts over gross outlays of funds).
d U.S. domestic support includes net CCC outlays, including interest payments and
operating expenses, minus CCC export outlays. Net costs of crop insurance are
included. Conservation Reserve Program and other conservation spending is excluded.

---

CRS-53
Table 27. Agricultural and Trade Policies in the United States
and the European Union
United States
European Union
Domestic Support
Producers of wheat, feed grains, upland
Historically, agricultural support has been
cotton, rice, and oilseeds are eligible for
based primarily on market price support
direct payments entitling them to fixed
provided through institutional prices. For
annual payments until 2007. Payments are
many commodities, these policies have
based on established acreage and yields. A
been operated together with measures to
few planting restrictions apply and
limit the volume of production to which
conservation rules must be observed.
the price support applies. From
Holders of contracts qualify for
1993/1994 on, as part of the May 1992
nonrecourse marketing assistance loans and reform of the Common Agricultural
loan deficiency payments. Producers of
Policy (CAP), there has been some
soybeans and other oilseeds also are
substitution for market price support by
eligible for contract payments and
direct payments.
nonrecourse marketing assistance loans and
loan deficiency payments.
For supported crops, direct payments were
based on historical areas and yields and
Substantial emergency assistance was
operated in conjunction with a land set-
provided to U.S. farmers in 1998, 1999,
aside requirement. Oilseeds support is
2000, and 2001 to counter the effects of
based on area payments.
declining commodity prices and natural
disasters.
For livestock products, direct payments
were based on fixed reference numbers
Prices of milk and dairy products are
and for beef they are subject to limitations
supported by an administered minimum
on stocking density. Further price
price for milk, CCC purchase of dairy
reductions, part of Agenda 2000 reforms
products, tariffs, and import quotas. Other
further reduced grain and meat prices and
livestock products are not supported by
will be only partially compensated by
administered prices.
increases in direct payments.
The price of sugar is supported above an
Beginning in 2005, EU farmers receive a
administered minimum price by controlling decoupled Single Farm Payment (SFP)
supply through a tariff import quota.
which generally groups the previous
direct payments into one and is decoupled
A counter-cyclical income support program from production. Eligibility for the SFP is
for grain, cotton, and oilseed producers
conditioned on farmers’ observing
was included in the 2002 farm bill. Dairy
enumerated environmental and “good
farmers also receive a form of counter-
farming” practices.
cyclical support through Milk Income Loss
Contract payments under the 2002 farm
bill.

---

CRS-54
United States
European Union
Trade Measures
Import quotas for dairy and sugar are
Trade restrictions in the form of variable
subject to conversion to tariff quotas under
import levies which kept imported
the 1994 Uruguay Round (UR) Agreement
agricultural products at prices that are as
on Agriculture.
high as EU internal prices were converted
to tariff quotas as the EU implemented the
Export subsidies provided under the Export 1994 Uruguay Round Agreement on
Enhancement Program (EEP) and other
Agriculture.
commodity specific subsidies are subject to
reduction under the UR Agreement.
Export subsidies (called restitutions or
refunds) are provided to traders to cover
Export market development programs, the
the difference between internal EU
Market Access Program (MAP,) and the
commodity prices and world market
Foreign Market Development Program
prices. Export restitutions are subject to
(FMDP) assist producer groups,
reduction commitments negotiated in the
associations, and firms with promotional
Uruguay Round Agreement on
and other activities.
Agriculture.
A federally chartered public corporation,
EU countries (but not the EU itself)
the Commodity Credit Corporation (CCC),
operate market development and export
makes credit guarantees available to private promotion programs funded by
financial institutions who finance the
Government outlays and mandatory
purchase U.S. agricultural exports.
producer levies. France, Netherlands, and
Germany have the largest programs
The United States has negotiated free trade
devoted to promoting mainly exports of
agreements (FTAs) with Canada and
high-value products.
Mexico which cover substantially all
agricultural trade among FTA signatories.
France, for example, assists with export
The United States has negotiated FTAS
financing through the Company
with Chile and Central American countries
for International Trade Insurance
and is involved in negotiating other
(COFACE), which is majority held
bilateral FTAs with Thailand and South
independently. COFACE commercial risk
Korea, among others.
coverage is usually less than three years,
but longer terms are available in certain
cases.
Several preferential trade arrangements
have been concluded with former
European colonies in Africa, the
Caribbean, and the Pacific.

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CRS-55
United States
European Union
Food Aid
The United States is the world’s leading
The EU provides about 1/3 of world food
supplier of food aid. It provides more than
aid.
half of the global total.
EU food aid consists of two parts, EU aid
The United States provides food aid mainly and individual country bilateral programs.
through P.L. 480 also known as the Food
EU aid is distributed mainly through the
for Peace program. Wheat and wheat flour
United Nations’ World Food Program;
are the main commodities provided as food
bilateral aid is distributed directly to
aid, but rice and vegetable oils are also
receiving countries. Bilateral food aid
important in P.L. 480 programs. Higher-
constitutes about 70% of the total of EU
value products are made available in special food aid. All EU food aid is provided as
feeding programs. Responsibility for
donations.
implementing food aid programs is shared
by USDA and the U.S. Agency for
Wheat is the predominant commodity in
International Development (AID).
EU food aid; lesser amounts of skim milk
powder, vegetable oils, sugar, and pulses
P.L. 480 food aid is provided on
are provided.
concessional terms (Title I) and as
donations (Titles II and III). Title I food aid
is intended to help develop overseas
markets; Titles II and III are for
humanitarian or developmental purposes.
Two other food aid programs are conducted
under Section 416(b) of the Agricultural
Act of 1949 and the Food for Progress Act
of 1985. The former provides surplus CCC
inventories as donations; the latter provides
concessional credit terms or commodity
donations to support emerging democracies
or countries making free market economic
reforms. A recently enacted food aid
program, the McGovern-Dole School Food
for Education program, finances school
feeding and child nutrition projects in poor
countries.

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CRS-56
Table 28. Agricultural and Trade Policies in
Canada and Australia
Canada
Australia
Domestic Support
Agricultural policy involves a broad
Both Commonwealth and State
range of measures implemented
programs provide funds for farm
by both the Federal and Provincial
restructuring, rural development and
Governments.
research, and income-tax concessions.
Under the Rural Adjustment Scheme,
Wheat and other grain prices are
the Commonwealth offers interest rate
supported by the Canadian Wheat
subsidies on commercial loans for
Board (CWB) which has an exclusive
productivity improvements, short-term
right to purchase wheat produced in
downturns, or reestablishment after
Manitoba, Saskatchewan, Alberta,
leaving farming.
and the Peace River Valley of British
Columbia, and to export it or sell it
Excise taxes on diesel fuel used in off-
domestically.
road vehicles and machinery are
refunded under the Diesel Fuel Rebate
Farmers can participate in the
Scheme
Canadian Agricultural income
Stabilization Program which protects
The Commonwealth guarantees
farmer against risks associated with
Australian Wheat Board loans used to
weather and low prices.
finance advance payments to wheat
producers.
Supply management systems exist for
several commodities, including milk,
A large number of statutory marketing
poultry, and eggs. Marketing boards
boards exist at the Commonwealth and
set producer prices and production
State levels. The purposes of these
quotas for some commodities.
boards are to increase producer returns,
stabilize prices, and assist with
Provincial governments operate
marketing.
other, autonomous programs, often
through provincial marketing boards.
States impose supply controls on milk.
About one-third of total budgetary
Some States impose supply controls on
expenditure for Canadian agriculture
eggs, sugar, and rice. Marketing
is provided by Provincial
arrangements operate in some States
Governments.
for barley, sorghum, corn, rice, and
tobacco.

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CRS-57
Canada
Australia
Trade Measures
Import quotas apply to imports of
Tariffs protect sugar, tobacco, and
certain products — particularly dairy,
processed fruit and vegetables. A
poultry, and eggs — and are used in
tariff-rate quota applies to cheese
conjunction with supply management
imports from all countries except New
schemes for those products. The
Zealand
Uruguay Round Agreement required
that these quotas be converted to
Local content restrictions apply to fruit
tariffs with some minimum access for
juices and tobacco.
imports provided.
Manufacturing milk (milk used in the
A tariff rate quota on imports of
manufacturing of dairy products) is
boneless beef applies to imports from
supported through export subsidies
all countries except the United States
financed by levies on all domestic milk
and Mexico, Canada’s partners in
production.
NAFTA.
AWB Ltd., the privatized version of
Canada agreed to gradually eliminate
the Australian Wheat Board, has
its tariffs on most U.S. agricultural
monopoly control of wheat exports. A
products under the bilateral free trade
Crown corporation is the sole
agreement with the United States. It
exporting authority for sugar in
reached a separate bilateral
Queensland, the main sugar producing
agreement with Mexico under the
state.
North American Free Trade
Agreement, which also requires a
The Commonwealth provides export
scheduled elimination of tariffs on
credit for wheat exports and extends
most agricultural products.
credit insurance. The Australian
Wheat Board makes sales on credit
The Federal Government guarantees
terms. The Government’s Export
export credit for wheat exports,
Finance and Insurance Corporation
usually for three years or less. It is
provides export insurance and insures
also responsible for debt of the
credit sales by the Australian Wheat
Canadian Wheat Board, which can
Board.
borrow money to finance wheat sales.
Export promotion is provided primarily
Canada promotes exports, including
by commodity marketing boards and
agricultural exports, through the
associations; the Commonwealth
Program for Export Market
Government provides only modest
Development. Assistance is made
assistance to promote agricultural
available to commodity associations.
exports.
Some important commodity groups
and associations fund all are part of
their own export market development
activities. Provincial Governments
have modest export promotion
programs.

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CRS-58
Canada
Australia
Food Aid
Canada is the third largest provider
Australian food aid is provided mainly
of food aid.
to meet disaster or emergency
situations. Australian food aid is
Food aid is administered as part of
provided both bilaterally and through
Canada’s foreign aid program; the
the U.N. World Food Program.
Canadian International Development
Agency (CIDA) is responsible for
The main commodities provided under
implementing the program. Food aid
Australia’s food aid program have been
is donated and used to help recipient
wheat, rice, and wheat flour. Other
countries reform their agricultural
commodities include vegetable oils,
policies or to meet humanitarian
peas, and biscuits.
emergencies. In 1994, 60% of
Canadian food aid was distributed
multilaterally, mainly through the
U.N. World Food Program.
Wheat and wheat flour make up the
largest portion of Canadian food aid.
Non-grain products, especially canola
(rapeseed) oil, pulses, and fish
account for about a third.
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