DAVIS — Economic research measuring the overall losses to California agricultural exports resulting from the trade war shows that two years of Market Facilitation Program (MFP) payments only covered roughly half of the net losses to California commodities, according to an article in the November-December edition of ARE Update.

UC Davis agricultural economists Professor Colin Carter and Ph.D. student Jiayi Dong compare the 2018 and 2019 MFP payments made to California farmers affected by the trade wars with estimates of the net impact of the retaliatory tariffs on their agricultural exports. Their paper highlights the disparities in payments across different U.S. states showing that, despite significant losses due to the trade war, California agriculture received a relatively small share of MFP payments, equivalent to about 2 percent of net farm income, compared to the 17 percent overall average for U.S. states. Overall, California incurred the largest net economic welfare losses due to the trade war of any U.S. state.

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