Friday, September 14, 2018

Congressional Research Service on Market Facilitation Program

Here's the CRS explanation and commentary on the MFP.

Two paragraphs from the summary:
Most farm commodity and advocacy groups have been supportive of the trade aid package even as they have called for solutions that restore export activity.
However, stakeholders have begun to question the equity of the distribution of MFP payments due to difficulties in isolating specific market effects and the lack of transparency around the formulas for determining MFP payment rates. Some trade economists and market watchers have suggested that its potential effects could be longer lasting because the imposition of tariffs and retaliatory tariffs have created uncertainty about U.S. trade policy behavior. Further, the use of CCC authority to mitigate tariff-related losses may establish a precedent for future situations.

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