Book Description
World grain and oilseed production in 1984-85 increased sharply with favorable weather in most major production areas except Canada, Africa, and USSR, Increased production also was due to a strong upward trend in crop yields in the European Community, India, and China that has shifted these areas from large importers of U.S. farm products to exporter positions and competitors of the U.S. Increased production in these areas reflects new crop varieties, increased use of fertilizer and other inputs, and changes in China's economic system to provide incentives for farm workers to increase productivity. With relatively steady world livestock production and demand for livestock feed ingredients, competition intensified in world grain and oilseed markets in 1984-85,and carryover stocks of these commodities are again increasing. in this environment, exports of U.S. farm products and U.S. shares of world trade have been restricted more than those of other exporters, partly bacause of a strong U.S. dollar that reduces the price-competitiveness of American farm products. Reduced exports are one of several factors contributing to serious financial stresses in the U.S. agricultural sector. The current trade environment is generating strong pressures ofr increased protectionism in trade policies, as trading partners attempt to maintain os expand their share of global exports white protecting domestic industries from import competition. More appropriate policies might focus on causes of slow growth in world trade.