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

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

doi:10.1002/aepp.13055

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

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

Agricultural and Consumer Economics

Research output: Contribution to journal › Article › peer-review

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.

Original language	English (US)
Pages (from-to)	227-244
Number of pages	18
Journal	Applied Economic Perspectives and Policy
Volume	42
Issue number	2
DOIs	https://doi.org/10.1002/aepp.13055
State	Published - Jun 1 2020

Keywords

Agricultural credit risk
Farm financial position
Farm income
Market facilitation program
Probability of default

ASJC Scopus subject areas

Development
Economics and Econometrics

Online availability

10.1002/aepp.13055

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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.",

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

Abstract

Keywords

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