Foreign Economic Development and Agricultural Trade

Excerpts from the report: American agriculture has a big stake in larger overseas markets for farm products resulting from foreign economic development and growth. In recent years, farm products from 65 million harvested acres -- about 1 acre in 5 — have been exported. Value of agricultural products shipped abroad totaled a little over $5 billion in both 1961 and 1962. This is about 15 percent of the total value of U.S. farm marketings. Traditionally, the best markets for agricultural products have been the highly-developed countries. But over the long term, less-developed countries are potential markets for much larger quantities of products from the United States and other developed countries. How rapidly markets expand in low-income countries will depend upon how rapidly these countries achieve economic growth and increase their foreign exchange earnings. Economic and technical aid programs can be very important in helping low-income countries achieve higher growth rates. This paper compares the relationship of economic development and agricultural trade with associated levels of total and agricultural trade in developed and less-developed countries. Total and per capita incomes are used as measures of economic growth. Special attention is given to how economic growth and incomes abroad influence exports of U.S. agricultural products.