May 21, 1999

The June-July issue of USDA's Agricultural Outlook includes articles on several country issues: Canada and wheat trade; Russia's economic crisis; Middle East and North Africa imports; Conservation Reserve Program acreage limits, and state trading and management of grain marketing in China.

An increase in U.S. imports of Canadian wheat resulted from a series of events in the early 1990s, an "isolated occurrence that has run its course," according to one article. Trade liberalization, the elimination of internal Canadian transport subsidies for exported grain and bad weather were some of the contributors.

Agricultural production in Russia should be stimulated, another article says, since major depreciation of the ruble against foreign currencies "substantially improves the price competitiveness of domestic output compared with imports." Russian imports of agricultural and food products have declined by about three-fourths; U.S. ag exports have plunged nearly 80%.

The April lifting of U.S. trade sanctions against countries in the Middle East could add to increased U.S. agricultural exports to the region in the long term, says another Ag Outlook article. The United States is a major supplier of agricultural commodities to the Middle East and North Africa where food demand is increasing. Rapidly growing populations, increasing real incomes and changing diets from urbanization are some factors that have overwhelmed the region's capacity to meet its consumption needs.

If federal legislation increases the statutory cap on CRP enrollment, new signups likely would have less erosion-reduction benefits compared with other environmental benefits, says another article. However, with greater acreage placed in conserving uses, total erosion benefits still would increase. After accepting 5 million acres in the 18th signup last March, the CRP stands just 5 million acres shy of the statutory limit of 36.4 million acres.