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Title: The Export Enhancement Program: Prospects Under the Food, Agriculture, Conservation, and Trade Act of 1990
Published in: Working Papers Series
Author/s: Stephen Haley*
Year: 1991
Number: 91-6

According to provisions of the 1990 U.S. farm bill, the export enhancement program (EEP) will continue to be an important instrument in promoting U.S. agricultural exports and in challenging subsidizing competitors, like the European Community (EC), with funding levels set at a minimum of $500 million annually through 1995. This research, whose purpose is to evaluate the likely effectiveness of the wheat EEP through 1995, reaches several conclusions: (1) the EEP will have a significant effect on U.S. wheat exports, but will be subject to diminishing returns at levels higher than the annual minimums; and (2) the EC will only be marginally affected by the EEP, that is, it can effectively counter the effects of the EEP at low cost.