Abstract

The United States has an extensive assistance program for less developed countries (LDCs), although its contribution is the lowest among the developed market economies in percent of allocated GNP (OECD 1988). On average for 1985/86, about 11.2 percent or $1.05 billion (1985 prices and exchange rates) of U.S. official development assistance was related directly to agricultural production (OECD 1988). The impact of agricultural development assistance on U.S. agricultural export markets is a concern of the U.S. government and agricultural producers, especially in periods of excess supplies of agricultural commodities. Specifically, U.S. policy makers and producers ask whether development assistance emphasizing agriculture in LDCs is consistent with policies to promote or enhance exports of U.S. agricultural commodities and increase income to the domestic agricultural sector.