Wheat Commodity Program:

Despite Reforms, Government's Involvement Remains Substantial

RCED-93-30: Published: Mar 18, 1993. Publicly Released: Mar 18, 1993.

Additional Materials:


Office of Public Affairs
(202) 512-4800

Pursuant to a congressional request, GAO reviewed the effects of the 1985 and 1990 U.S. wheat program reforms, focusing on the: (1) reforms' effect on farmers' production decisions; (2) government's costs in managing wheat stocks; and (3) government's involvement in wheat-related supports.

GAO found that: (1) the 1985 and 1990 wheat program reforms reoriented farmers' production decisions toward market forces and reduced the federal government's involvement and costs in managing surplus wheat; (2) the reforms lowered farm supports and target prices, changed the way the government calculated deficiency payments to farmers, and linked acreage levels to wheat stock levels; (3) although the government's role in wheat farmers' production decisions has been reduced, the government continued to provide producers $2.3 billion in deficiency payments between 1990 and 1991; (4) 1985 reforms that reduced the government's costs for managing wheat stocks also reduced price supports, established mechanisms to reduce accumulated stocks, and expanded U.S. export markets; (5) the cost of the Conservation Reserve Program and the Export Enhancement Program totalled about $800 million annually, but program costs were offset by reduced deficiency payments resulting from lower domestic supplies and associated higher market prices; and (6) although governmental costs varied depending on weather conditions and international wheat prices, future government costs are expected to decline.

Mar 18, 2015

Mar 11, 2015

Feb 27, 2015

Jan 12, 2015

Dec 18, 2014

Nov 6, 2014

Oct 29, 2014

Oct 20, 2014

Sep 8, 2014

Aug 7, 2014

Looking for more? Browse all our products here