Distribution of Market Facilitation Program Payments and their Financial Impact for Illinois, Kansas, and Minnesota Farms. Issue 2 (3rd May 2020)

• Record Type: Journal Article
• Authors: Paulson, Nicholas D.; Featherstone, Allen M.; Hadrich, Joleen C.
• Is Part Of: Applied economic perspectives and policy. Volume 42:Issue 2(2020)
• Page Start: 227
• Page End: 244
• Publication Date: 2020-05-03
• Subjects: Agricultural credit risk -- Farm financial position -- Farm income -- Market facilitation program -- Probability of default; Q18 -- Q14; Agriculture -- Economic aspects -- Periodicals; Agriculture and state -- Periodicals; 338.105
• DOI: 10.1002/aepp.13055
• Languages: English
• ISSNs: 2040-5790

Abstract

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.