move in opposite directions. On the one hand, a 

 "substitution effect" occurs rather quickly when food 

 produced abroad results in a reduction of food exports. 

 On the other hand, increased food production abroad 

 will result in higher incomes and greater demand for 

 goods and services generally, including food — this 

 might be called an "expansion effect." Much empirical 

 evidence indicates that the expansion effects will 

 outweigh the substitution effects from increased food 

 production abroad. Thus, while there may be adjustment 

 problems for certain U.S. producers, they would tend to 

 be offset by other gains for U.S. agriculture and the 

 U.S. economy. 



We emphasize six areas for enhancing the 

 contribution of science and technology to food 

 production, giving special weight to immediate impact 

 and the development of local capabilities for both 

 planning and research. These areas are: 



1. Reducing food losses (harvest and postharvest) 



2. Water management for irrigation 



3. weather and crop information systems 



4. Farm and land- use planning for sustained food 

 production 



5. Plant and animal protection 



6 . Management systems for sustained crop production 



U.S. capabilities for applying science and 

 technology to food problems extend far beyond the six 

 areas selected. Moreover, our ability to apply these 

 capabilities to developing country problems has been 

 greatly enhanced by extensive technical assistance in 

 agriculture over the past 25 years. This selection is 

 not intended to suggest any diminution of the past U.S. 

 technical assistance role. Rather, we recommend that 

 the United States stand ready to continue and expand 

 its collaboration on food problems on a broader basis 

 than the six areas emphasized here. 



One outstanding example of such an opportunity is 

 basic research on improving the biological productivity 

 of crops, which involves genetic improvement, nitrogen 

 fixation, and the enhancement of photosynthesis. This 

 kind of research is being stepped up in the United 

 States, and it has the strong support and cooperation 

 of many developing countries. Such research 

 contributes to the development of the science base on 

 which increases in productivity ultimately depend. 



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