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Distribution of Market Facilitation Program Payments and their Financial Impact for Illinois, Kansas, and Minnesota Farms

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  • Nicholas D. Paulson
  • Allen M. Featherstone
  • Joleen C. Hadrich

Abstract

The recent infusion of cash into production agriculture due to damages from retaliatory trade actions has been large. Up to $28 billion has been authorized through the Trade Mitigation Program in 2018 and 2019, accounting for a significant share of farm income and providing liquidity in an extended period of low prices. Using farm‐level data from Illinois, Kansas, and Minnesota, this research examines the importance of market facilitation program payments in supporting incomes and reducing credit default risk. Results illustrate the additional liquidity provided for farms, and the distributional effects across states and among farms within each state.

Suggested Citation

  • Nicholas D. Paulson & Allen M. Featherstone & Joleen C. Hadrich, 2020. "Distribution of Market Facilitation Program Payments and their Financial Impact for Illinois, Kansas, and Minnesota Farms," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 227-244, June.
    • Handle: RePEc:wly:apecpp:v:42:y:2020:i:2:p:227-244
    DOI: 10.1002/aepp.13055
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    2. Joseph P. Janzen & Nathan P. Hendricks, 2020. "Are Farmers Made Whole by Trade Aid?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 205-226, June.
    3. Joseph P. Janzen & Trey Malone & K. Aleks Schaefer & Daniel P. Scheitrum, 2023. "Political returns to ad hoc farm payments?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(1), pages 555-578, March.
    4. Belasco, Eric J. & Smith, Vincent, 2022. "The impact of policy design on payment concentration in Ad-hoc disaster Relief: Lessons from the Market Facilitation and Coronavirus food Assistance programs," Food Policy, Elsevier, vol. 106(C).

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