Wheat Support:

The Impact of Target Prices Versus Export Subsidies

RCED-94-79: Published: Jun 7, 1994. Publicly Released: Jun 20, 1994.

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO reviewed: (1) how the Export Enhancement Program (EEP) has affected the income of wheat producers and grain exporters; (2) whether wheat producers' income would have increased if additional EEP funds had been used for direct income support payments; and (3) the benefits of higher target prices.

GAO found that: (1) EEP has generally increased wheat exports by 3 to 11 percent and raised wheat prices by 0.4 to 12 percent; (2) EEP has increased wheat producers' and marketing firms' income as much as 18 percent; (3) EEP funding can impact the cost of federal commodity programs when it is provided in redeemable certificates rather than in cash; (4) higher target prices would increase producers' net income from wheat production by more than the equivalent level of indirect support through EEP; (5) by increasing market prices, EEP benefits all wheat producers whether or not their wheat acreage is enrolled in the federal wheat commodity program; (6) EEP also discourages foreign competitors from continuing marketing practices that limit access to foreign markets; and (7) increasing exports through EEP would be costly, since the government subsidy on each additional bushel of wheat exported would exceed the farm-level price received for that bushel.

Mar 26, 2014

Mar 5, 2014

Oct 17, 2013

Sep 4, 2013

Aug 30, 2013

Aug 29, 2013

Jul 29, 2013

Jun 27, 2013

Jun 3, 2013

May 13, 2013

Looking for more? Browse all our products here