State Level Revenue Analysis of the Market Facilitation Program

Authors

Anil Giri, University of Central MissouriFollow
Sankalp Sharma, Kent State University - TuscarawasFollow
Kyle Lovercamp, University of Central MissouriFollow
Iuliia Tetteh, Illinois State UniversityFollow
Dhruba Dhakal, University of MissouriFollow
Rudra Baral, Kansas State UniversityFollow

Keywords

Market Facilitation Program, International Trade, Trade War, Tariffs, Trump Administration, Agricultural Economics, U.S./China Trade

Abstract

To compensate the US producers affected by the “trade war” with China, the United States Department of Agriculture (USDA) offered direct payments to producers using 2018 production levels under the Market Facilitation Program (MFP). Results of the revenue efficiency analysis of the MFP payments show the average producers in 12 out of 14 major corn and soybean producing states were compensated such that their 2018 per acre revenue was more than their 2017 per acre revenue. Conversely, an average producer in those states that experienced drought was under-compensated, as their total per acre revenue after the MFP payment was less than their 2017 revenue. Use of the 2018 yield, instead of a three-year average, resulted in a net positive gain for most producers.

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 License.

Recommended Citation

Giri, Anil; Sharma, Sankalp; Lovercamp, Kyle; Tetteh, Iuliia; Dhakal, Dhruba; and Baral, Rudra (2019) "State Level Revenue Analysis of the Market Facilitation Program," Online Journal of Rural Research & Policy: Vol. 14: Iss. 1. https://doi.org/10.4148/1936-0487.1099