U.S. Feed Grains: Background for 1990 Farm Legislation

Feed grains (corn, sorghum, barley, and oats) lead all crops in terms of production value and acres planted. During 1988 their value of production totaled $15.3 billion, or 22 percent of all crops grown, while planted area totaled 101.6 million acres or 33 percent of principal crop acres planted. Domestic use accounts for about 73 percent of total disappearance with most going into livestock and poultry feed. Food, seed, and industrial uses claim the remaining domestic share with items such as ethanol, high fructose corn syrup, barley malt, oats bran, and other beverage and food items. Exports claim about 27 percent of total use and are important to corn, sorghum, and barley producers, but not oats. Government income and support programs are periodically vital to feed grain producers as recent government payments equaled nearly 30 percent of the crop value. Likewise, consumers and taxpayers are equally concerned over the cost of these programs. Policy issues for 1990 legislation include the level and flexibility of price and income supports, functioning of the CCC storage program and the farmer-owned reserve, acreage reduction and conservation reserve programs, programs to compensate producers for disaster, programs to enhance exports, conservation and environmental issues, and policy effects on trade, the livestock sector, resources, consumers, and taxpayers.