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Explaining the Source of Racial Disparities in Market Facilitation Program (MFP) Payments

Author

Listed:
  • Hendricks, Nathan P.
  • Murphy, Ashling M.
  • Morgan, Stephen
  • Padilla, Samantha
  • Key, Nigel

Abstract

This paper aims to analyze the distribution of Market Facilitation Program payments and explain the sources of disparity of those payments by farm operator race. In this paper, we use farm-level data from the Census of Agriculture to estimate the payments each farm was eligible to receive from the 2018 and 2019 Market Facilitation Program. We find that farms with a White operator were eligible to receive significantly larger payments than farms with a non-White operator. Most of the disparity forfarms with a Black operator is due to differences in average farm size, since there are few large farms with a Black operator. The disparities for farms with an operator of other races were roughly half due to farm size and half due to the location of these farms and the types of commodities they tend to produce.

Suggested Citation

  • Hendricks, Nathan P. & Murphy, Ashling M. & Morgan, Stephen & Padilla, Samantha & Key, Nigel, 2023. "Explaining the Source of Racial Disparities in Market Facilitation Program (MFP) Payments," 2023 Annual Meeting, July 23-25, Washington D.C. 337402, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea22:337402
    DOI: 10.22004/ag.econ.337402
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    References listed on IDEAS

    as
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    Agricultural and Food Policy; Agricultural Finance; Public Economics;
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