This bulletin  presents an annual  econometric model  of the U.S. wheat economy. The research is part of a series on models for the major U.S. field crops; the goal is to provide forecasting and policy analysis tools

of  ultimate  use  for policy purposes.  Prices  for sorghum, a major  competitor  in the domestic  wheat-feed industry, affect wheat  supplies, domestic demand, and foreign demand. Rising incomes in less developed countries encourage  purchases  of  U.S. wheat, but income growth in Japan and Western Europe reduces purchases.  U.S. Government policy options for exportable wheat- food  aid, exports to centrally planned countries, or Government stock ownership-have significantly different influences on wheat prices.