Farmers' reactions to the US–China trade war: Perceptions versus behaviors

Abstract

This study examines how the political alignments of Midwestern farmers, proxied by their consumption of partisan media, affect their perceptions of and responses to the US–China trade war. Our results indicate that farmers who consume conservative media perceive a lower income loss resulting from the trade war and view the Market Facilitation Program (MFP) as more helpful. Conversely, farmers who consume liberal media have the opposite perception biases. We found no evidence of any association between partisan media consumption and planting and risk management decisions. Overall, partisan bias exists despite financial interest at stake but does not affect behaviors.