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.”
Farm Policy News
Some Kinks in Food Supply Chain Persist During COVID-19 Fallout
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.”
China “Very, Very Committed” to Phase 1, But Skepticism Remains as COVID-19 Repercussions Cloud Outlook
Reuters News reported last week that, “China remains ‘very, very committed’ to meeting its commitments under a Phase 1 trade deal with the United States, despite the unprecedented economic and health impacts of the new coronavirus pandemic, a senior U.S. trade official said on Wednesday.”
Meatpacking Plants Expected to Open in “Days Not Weeks,” as Protein Markets Adjust to COVID-19
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.”
Supply Chain Woes Persist After Trump Executive Order, as COVID-19 Impacts Endure
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.”
Chairman of Tyson Says Food Chain is “Breaking,” While President Trump Orders Plants to Remain Open
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.”
Decrease in Energy Demand Due to COVID-19 “Crushes Ethanol Market”
Wall Street Journal writer Kirk Maltais reported this week that, “Plummeting energy demand during the coronavirus pandemic has decimated the ethanol industry. The timing for U.S. farmers couldn’t be worse.”
Meat Shortages “Dangerously Close,” as COVID-19 Induced Supply Chain Bottlenecks Persist
Bloomberg writers Michael Hirtzer and Tatiana Freitas reported recently that, “Plant shutdowns are leaving the U.S. dangerously close to meat shortages as coronavirus outbreaks now spread to suppliers across the Americas.”
As COVID-19 Slows Meat Processing, Meat Shortages a Growing Concern; Livestock Producers Face Tough Choices
Bloomberg writers Deena Shanker, Michael Hirtzer, Jen Skerritt, and Lydia Mulvany reported this week that, “The U.S. is edging closer to possible meat shortages with another major plant taken off line.”
UN’s World Food Programme: COVID-19 Could Almost Double Acute Hunger
The Financial Times reported this week that, “Governments and international institutions are becoming increasingly worried about the growing constraints on access to food around the world as coronavirus disrupts economies and leaves workers without income for sustenance.”
COVID19 at Meat-Processing Plants Highlights Key Link, and Vulnerabilities, In Food Supply Chain
Bloomberg writers Stephen Joyce, Michael Hirtzer, and Jen Skerritt reported this week that, “Hundreds of National Guard personnel are being activated in Iowa as coronavirus sweeps through meat-processing plants in a state that accounts for about a third of U.S. pork supply.”
Five Governors Ask EPA for RFS Waiver
Bloomberg writers Jennifer A Dlouhy and Michael Hirtzer reported last week that, “Five American governors are asking the Trump administration to waive U.S. biofuel-blending requirements, arguing the cost of complying with the mandates on top of coronavirus-spurred lockdowns pose a ‘severe economic harm’ to the country.”
Trump Administration Announces Coronavirus Food Assistance Program, $19 Billion Relief Program for Agriculture
Wall Street Journal writers Andrew Restuccia and Jesse Newman reported on Friday that, “President Trump announced a $19 billion relief program for the agriculture sector, which has been hard hit by the coronavirus outbreak, turning to a playbook the administration has used in its trade fight with China.”
Federal Reserve: Observations on the Ag Economy- April 2020, COVID-19 Variables Noted
On Wednesday, the Federal Reserve Board released its April 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.
Focus on Logistical Disruptions for Food, as USDA Assistance Plan Expected Soon
New York Times writers Michael Corkery and David Yaffe-Bellany reported this week that, “The nation’s food supply chain is showing signs of strain, as increasing numbers of workers are falling ill with the coronavirus in meat processing plants, warehouses and grocery stores.”
COVID-19 Effects Persist: Decline in Farm Income Seen, Processing Disruptions Continue, Phase One Trade
DTN Ag Policy Editor Chris Clayton reported this week that, “An updated economic analysis looking at the impact of COVID-19 projects crop farmers to see $11.85 billion in lower revenue in 2020 and all livestock sectors combined to see a $20.24 billion drop in receipts for the year.”
Smithfield Pork Processing Plant Closes, as COVID-19 Cases at Meat Plants an Increasing Worry
The Associated Press reported this week that, “Virginia-based Smithfield Foods announced Sunday that it is closing its pork processing plant in Sioux Falls until further notice after hundreds of employees tested positive for the coronavirus — a step the head of the company warned could hurt the nation’s meat supply.”
COVID-19 Hits Some Domestic Ag Markets, Disrupts Global Supply, As Pres. Trump Highlights Aid to Farmers
Bloomberg’s Mike Dorning reported last week that, “President Donald Trump said he has asked his agriculture secretary to ‘use all of the funds and authorities at his disposal,’ to aid U.S. farmers, whose financial peril has worsened in the coronavirus pandemic.”
USDA-FAS Reports Provide Updates on Ag Trade, Production, and COVID-19 Impacts
On Thursday, the USDA’s Foreign Agricultural Service (FAS) released three reports that provided updated information on agricultural trade, production and recent impacts of the COVID-19 outbreak. A focus on wheat and rice, protein markets, and soybeans are included in today’s update.
COVID-19 Hampers Some Markets, as Worker Safety and Well-Being Garner Increased Attention
DTN Ag Policy Editor Chris Clayton reported this week that, “As meatpacking plants and other food processors reduce capacity or temporarily close because of coronavirus cases, Vice President Mike Pence pointed to the vital nature of the food industry and told those workers ‘to show up and do your job’ to keep grocery shelves stocked.”