Impacts of retaliatory tariffs on farm income and government programs

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Authors

Westhoff, Patrick
Davids, Patricia (Tracey)
Min Soon, Byung

Journal Title

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Volume Title

Publisher

Agricultural and Applied Economics Association

Abstract

Retaliatory tariffs imposed by trading partners have had major impacts on U.S. commodity markets. As detailed in other articles in this theme issue, these tariffs have reduced U.S. exports and resulted in lower domestic commodity prices. These changes have important implications for farmers, taxpayers, and others with a stake in U.S. agriculture. We use estimates of the commodity market impacts of retaliatory tariffs to estimate implications for farm income, government farm program outlays, and other indicators. The results highlight the importance of considering effects that extend across markets, such as how a change in soybean exports and prices may affect producers of corn, chickens, and other commodities. They also provide a reminder that the current suite of farm policies includes a mix of countercyclical and procyclical programs.

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Keywords

Bilateral trade, Crop insurance, Farm commodity programs, Farm income, Tariffs, Retaliatory tariffs, Government programs

Sustainable Development Goals

Citation

Westhoff, P., Davids, T. & Soon, B.M. 2019, 'Impacts of retaliatory tariffs on farm income and government programs', Choices, vol. 34, no. 4, pp. 1-8.