Two years of MFP payments only covered roughly half of the net losses to California commodities, according to a new paper by UC Davis economists.
The state’s farmers received a relatively small share of MFP payments, equivalent to about 2% of net farm income, compared to the 17% average for all states. Overall, California incurred the largest net economic welfare losses due to the trade war.
“The trade war caused losses that outweighed any potential benefits by far, as tariff increases induced a substantial reallocation of agricultural trade around the world,” explained Professor Colin Carter.
