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Kansas State University economists Joseph Janzen and Nathan Hendricks found that Market Facilitation Program payments generally exceeded the short-term price damage from the trade war. Payments for cotton and sorghum were well above estimated price losses, while corn was an exception.
The authors noted that long-run losses are not captured in the analysis.
The finding suggests trade aid has offset the short-run price hit to farmers, which may reduce pressure for acreage shifts away from affected crops. The long-run impact on export demand remains uncertain.
dtnpf.comKatie Micik. DehlingerMay 13, 2020Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
