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The Impact of Policy Design on Payment Concentration in Ad Hoc Disaster Relief

AEI 2021.02.04
This report examines the distributional implica­tions of two recent ad hoc disaster aid programs, the 2018 and 2019 Market Facilitation Programs (MFP)―which have distinctly different program designs―and the federal crop insurance program. Farm-level data are used to estimate the relationship between farm size, measured by crop sales, and the distribution of program benefits. Results indicate payments are more concentrated on larger farms that receive higher per-acre payments under the 2018 MFP and federal crop insurance program. Under the Coro­navirus Food Assistance Program, with a design simi­lar to the 2018 MFP, payments are also more heavily concentrated on larger farms.

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