FAPRI sees $20-B net farm income loss from COVID
The Food and Agricultural Policy Research Institute has released an “early snapshot” of the effects of COVID-19 on ag prices and farm income.
Pat Westhoff tells Brownfield Ag News FAPRI-MU estimates $20.1 Billion dollar drop in net farm income this year; the livestock sector taking the biggest hit.
“A more than a 10% drop in cattle prices and nearly as large of an impact on pork, chicken and milk prices in our analysis. And some people think it’s even more than that.”
On the crop side, Westhoff tells Brownfield, “We saw corn and cotton as being two commodities that were hit particularly hard. In the case of corn, a lot of the problem is what’s happening in the ethanol industry.”
The FAPRI analysis INCLUDES the expected Phase One trade purchases from China but does NOT include federal stimulus or any other government monies to help alleviate the impact of COVID-19. Westhoff says the report has been sent to USDA as the agency works to divide the stimulus money between ag sectors.
^^Interview with Pat Westhoff ^^ ^^FAPRI-MU Webinar: Impacts of COVID-19^^