Agricultural progress in the Third World and its effect on US farm exports : a special study

farm exports to the Third World have grown fivefold since 1970, representing by 1987 about 41% of all U.S. agricultural exports and two-thirds of food grain exports. This report charts Third World economic growth and agricultural trends in relation to U.S. agricultural exports and discusses the impact of U.S. policies on agriculture in developing countries. The report dispels the fear expressed by some farm groups that advances in agriculture abroad may create competition for U.S. agricultural exports. To the contrary, developing countries are most likely to expand their food imports when their economies are growing and their agricultural sectors are prosperous. The downturn in U.S. agricultural exports during the 1980"s is attributed not to Third World agricultural advances but to a combination of stagnant world demand and the loss of a share of the world market to foreign competitors. The report thus suggests that U.S. efforts to expand farm exports should focus on stimulating economic growth, including that of agriculture, in developing countries.