Wednesday, April 01, 2020

How has the pandemic has affected agriculture so far?

The coronavirus pandemic has stressed an already stressed agriculture industry, Ben Lilliston reports for the Institute for Agriculture and Trade Policy: "For more than six years, farmers have been managing low incomes, rising costs, increasing debt and bankruptcy, volatile export markets (exacerbated by President Trump’s tariff fights) and a series of extreme weather events tied to climate change. Now, the fast-moving, unprecedented covid-19 situation is creating new disruptive challenges for farmers and our food system."

Lilliston gives a run-down of how farm markets have been affected by the pandemic. The already-hurting dairy sector was hurt by "the closing of schools (which account for 7 percent of the fluid milk consumed in the U.S.) and restaurants (major cheese purchasers)," he reports. "Co-ops are considering milk dumps to deal with excess supply."

Restaurant closures also hit the beef market, contributing to a price drop of $250 to $300 per head. "Cattle ranchers were already calling for a federal investigation into the widening gap between prices paid to producers and the costs consumers pay in the supermarket for beef," Lilliston reports. "In a tacit acknowledgement that meat-industry profits at a time of covid-19 are bad optics, Tyson Foods and Cargill are temporarily lifting their prices to farmers and increasing wages to workers."

Some meatpacking employees have tested positive for the virus, but meat and poultry workers say their jobs require them to work in close quarters even when they're sick, which could facilitate the spread of disease, Michael Grabell reports for ProPublica.

So far, only two meatpackers, Tyson and Cargill, have announced temperature checks to screen employees for signs of covid-19. "Two more say they have begun rolling them out," Grabell reports. "But except for unionized plants, meat and poultry workers rarely get paid when they’re sick. At many companies, including Tyson, workers receive disciplinary points for calling in sick. Because points lead to termination, workers told ProPublica, they and some of their colleagues have continued to work even when sick, despite the coronavirus."

University of Illinois agriculture economist Gary Schnitkey advised that the agriculture sector needs to observe social distancing, restricted travel and increased hand-washing to limit the virus's spread, Mike McGinnis reports for Successful Farming.

Farmers who sell products directly to consumers in community supported agriculture programs are doing well, and many have been overwhelmed with orders from people seeking to stock up in uncertain times, Ryan McCrimmon reports for Politico's Morning Agriculture newsletter.

Ag stakeholders have tried to reassure consumers that the food supply chain is fine, and have urged people not to hoard food, McGinnis reports. However, the United Nations Food and Agriculture Organization warns that some food and farming supply chain disruptions could be on the horizon in nations with significant outbreaks, and that smaller farmers will be particularly vulnerable to any shortages. The group recommends boosting nutrition safety nets and reducing some import tariffs.

Stress-baking and hoarding, possibly in conjunction with Easter coming up, has led to a retail egg shortage, Laura Reiley reports for The Washington Post. Consumers wanting to ensure future supply of eggs and meat have even caused a temporary shortage in chicks, Emily Davies reports for the Post.

The recent federal stimulus package provided $9.5 billion for agricultural relief. Farm Policy News has a good roundup of news articles about relief in the package for agriculture.

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