Abstract
Departures of grain supplies and consumption below trend of three percent of less could be achieved if the United States would provide grain to meet all production shortfalls in excess of six percent and if the developing countries carried modest levels of stocks. The cost of the programme would be small. The insurance feature should represent the major form of food aid provided by the United States. Examples of the operation of a programme of optimal carryovers and insurance are provided for India and Africa for the period 1968 through 1974.
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