of Agriculture (USDA) forecasts that U.S. agricultural exports for FY2008 will reach a record high of $91 billion, and forecasts that imports will reach $75.5 billion, also a record ( Figure 1 ). If these forecasts hold, the U.S. agricultural trade balance in FY2008 would be $15.5 billion. Many variables interact to determine the level of U.S. agricultural exports: income, population growth, and tastes and preferences in foreign markets; U.S. and foreign supply and prices; and foreign import barriers and exchange rates. While many of these factors are beyond the scope of congressional action, farm bills have typically included a trade title (Title III in the 2002 farm bill, the Farm Security and Rural Investment Act of 2002) that authorizes programs that guarantee the private financing of U.S. agricultural exports, subsidize agricultural exports, promote U.S. farm products in overseas markets, or address foreign trade barriers. Agricultural Export Programs, Issues, and Congressional Action

On December 14, 2007, the Senate passed its version of the 2007 farm bill. The House of Representatives had passed its version on July 27, 2007. The bills, which would establish U.S. farm policy for 2008 through 2012, each contain a trade title (Title III) that authorizes and amends USDA agricultural export programs and U.S. international food aid programs. The bills incorporate many of the recommendations made by the Administration in its farm bill trade proposals, especially changes in USDA's export credit guarantee programs to make them consistent with World Trade Organization (WTO) rules limiting export subsidies. The trade title in each bill also incorporates Administration proposals for increased funding for export market promotion and for addressing sanitary and phytosanitary barriers to U.S. agricultural exports. Both bills also reflect provisions of farm legislation introduced earlier in the 110 th Congress, notably legislation introduced by Members representing the interests of fruit, vegetable, and tree nut (specialty crop) producers who advocate increased federal support for their production and marketing activities, including export market promotion. H.R.
On December 14, 2007, the Senate passed its version of the 2007 farm bill. The House of Representatives passed its version of the 2007 farm bill (H.R. 2419) on July 27, 2007. Both bills, which would establish U.S. farm policy for 2008 through 2012, contain a trade title (Title III) that authorizes and amends U.S. Department of Agriculture (USDA) agricultural export programs and U.S. international food aid programs. This report assesses 2007 farm bill trade title provisions for U.S. agricultural export programs. (See CRS Report RL33553, Agricultural Export and Food Aid Programs, by [author name scrubbed], for additional detail. For an analysis of food aid issues and the farm bill, see CRS Report RL34145, International Food Aid and the 2007 Farm Bill, by [author name scrubbed].)
The bills incorporate a number of the recommendations made by the Administration in its farm bill trade proposals, especially changes to USDA's export credit guarantee programs and export market development programs. Both bills modify the export credit guarantee programs to make them compatible with World Trade Organization (WTO) rules limiting export subsidies. Both bills also provide increased funding for export market promotion and for addressing sanitary and phytosanitary (food safety) barriers to U.S. agricultural exports. The bills also reflect provisions of farm legislation introduced earlier in the 110th Congress, notably legislation introduced by Members representing the interests of fruit, vegetable, and tree nut (specialty crop) producers to increase federal support for their production and marketing activities, including export market promotion.
U.S. agricultural exports for FY2008 are forecast by USDA to be a record high $91 billion, while imports will reach $75.5 billion, also a record. If this forecast holds, the U.S. agricultural trade balance in FY2008 would be $15.5 billion. Many variables interact to determine the level of U.S. agricultural exports—income, population growth, and tastes and preferences in foreign markets; U.S. and foreign supply and prices; foreign import barriers and exchange rates; and domestic farm policy and trade agreements. While many of these factors are beyond the scope of congressional action, farm bills have typically included programs that help to finance, subsidize, and promote U.S. commercial agricultural exports, or to address foreign trade barriers.