Agricultural Economy

Donnelle Eller reported on the front page of Tuesday’s Des Moines Register that, “The Trump administration has sent $4 billion in payments to U.S. farmers to help cover losses due to the coronavirus, part of $16 billion that’s available to provide direct aid to offset losses for farmers and ranchers.”

DTN Ag Policy Editor Chris Clayton reported last week that, “The American Farm Bureau Federation on Wednesday sent a detailed list of recommendations to Congress to help farmers, stating that even though lawmakers had provided earlier aid, more is needed because of economic losses facing the industry.”

On Wednesday, the Federal Reserve Board released its May 2020 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District. The report included several observations pertaining to the U.S. agricultural economy.

Recent news articles continue to highlight the ripple effects COVID-19 is having on some aspects of the U.S. livestock market.  Meanwhile, the minutes from the Fed’s April meeting noted that, “The agricultural sector was under severe stress due to falling prices for some farm commodities and pandemic-related disruptions, such as the closing of some food processing plants.”

Bloomberg writers Mike Dorning and Teaganne Finn reported yesterday that, “President Donald Trump announced rules Tuesday for a $19 billioncoronavirus farm aid package covering a broad swath of U.S. agriculture that producers can begin claiming by next week.”

Washington Post writers David J. Lynch, Annie Gowen and Laura Reiley reported this week that, “President Trump promised this year to deliver a financial bonanza for American farmers, boosted by two historic trade deals that would free them from their dependence on government bailouts.”

Donnelle Eller reported on the front page of Sunday’s Des Moines Register that, “The coronavirus has caused an agricultural tsunami that’s ripped through Iowa and the nation. Markets have been disrupted as schools, restaurants and hotels have shuttered, and meatpacking plants are slowing or closing as about 10,500 workers — including 1,650 in Iowa — have tested positive for COVID-19.”

Sky Chadde and Kyle Bagenstose reported on the front page of today’s USA Today that, “The meatpacking industry hit a grim milestone this week when the number of coronavirus cases tied to outbreaks at its beleaguered plants passed 10,000, according to USA TODAY and Midwest Center for Investigative Reporting tracking.” 

Kevin Rector reported on the front page of Wednesday’s Los Angeles Times that, “In less time than it takes a farmer to plant and harvest a head of lettuce, the nation’s entire food industry has been flipped on its head by the COVID-19 pandemic. An intricate system for matching supply with demand, established over decades, has been thrown out of whack just as unemployment and food insecurity are skyrocketing among families.”

Bloomberg writer Michael Hirtzer reported late last week that, “American beef output is down a lot more than plant closures would have you believe — a sign that slowdowns at facilities will continue to keep meat supplies tight even when some production lines reopen.”

Bloomberg’s Mike Dorning reported on Thursday that, “Agriculture Secretary Sonny Perdue said he expects meatpacking plants to reopen in “days not weeks” under President Donald Trump’s executive order invoking the Defense Production Act.”

Michael Corkery, David Yaffe-Bellany and Ana Swanson reported in Thursday’s New York Times that, “Ever since slaughterhouses became coronavirus hot spots, the meat industry has been asking the Trump administration for help.”

Financial Times writer Gregory Meyer reported this week that, “The largest US meat company has warned of shortages for consumers, saying the country’s complex food chain was ‘breaking’ as Covid-19 spreads to refrigerated packing plants.”