ABSTRACT
Tensions developed between the United States and the EC as the EC reverted from a net grain importer to a net grain exporter using high internal price supports and liberal export subsidies. The United States countered the EC-subsidized grain exports with the Export Enhancement Program. For many years, the USDA has used a variety of domestic agricultural policies in attempting to stabilize the production and prices of grains. The United States signed its first long-term grain supply agreement with the government of the Soviet Union in October 1975. The fundamentals of forming a cartel were tried formerly in several International Wheat Agreements and finally in an International Grains Arrangement. Feed grains include corn, barley, sorghum, oats, and rye. In the developed countries, feed grains are used primarily for livestock feeds, with lesser quantities utilized directly for human consumption, or indirectly in brewery or starch products.
