Agricultural policies in 2002 were implemented in the context of a weakening US dollar and world prices that were considerably lower for livestock products, especially for pork, poultry and milk powders, but significantly higher for crops, in particular for wheat. There were no major changes in the main policy instruments used by OECD countries with the important exception of the 2002 Farm Act in the United States. However, 2002 was a transitional year, covered by both the 1996 and 2002 Farm Acts, but still largely influenced by the 1996 legislation. The 2002 Farm Act will play a significant role in the evolution of United States agriculture and world markets over the next six years.