Farm Policy News from the University of Illinois has an excellent roundup of how the pandemic is affecting the agricultural economy. Some of the highlights:
An updated economic analysis predicts that the pandemic will cause an $11.85 billion decline in crop farmers' income this year, and a $20.24 billion drop in receipts for all livestock sectors combined. Overall, that's a $32 billion decrease. Net farm income in 2020 is projected to drop by $20 billion, after higher government payments and lower input prices are factored in.
Corn and soybean prices are down, but for different reasons. Soy prices are down because meatpacking-plant shutdowns have led to fears of lowered demand for soybean meal, a major livestock feed. Corn prices are down largely because demand for ethanol is down.
China's ambassador to the U.S. said his country is still implementing the first phase of the trade agreement the two countries signed in January, but said the pandemic might require some changes. Agricultural economists have been skeptical that China will fulfill its obligations under the agreement, which has no mechanism for compliance.
An updated economic analysis predicts that the pandemic will cause an $11.85 billion decline in crop farmers' income this year, and a $20.24 billion drop in receipts for all livestock sectors combined. Overall, that's a $32 billion decrease. Net farm income in 2020 is projected to drop by $20 billion, after higher government payments and lower input prices are factored in.
Corn and soybean prices are down, but for different reasons. Soy prices are down because meatpacking-plant shutdowns have led to fears of lowered demand for soybean meal, a major livestock feed. Corn prices are down largely because demand for ethanol is down.
China's ambassador to the U.S. said his country is still implementing the first phase of the trade agreement the two countries signed in January, but said the pandemic might require some changes. Agricultural economists have been skeptical that China will fulfill its obligations under the agreement, which has no mechanism for compliance.
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