Agriculture and livestock farming in the United States will yield at least 20 billion dollars less this year due to the corona pandemic. Government support for the affected agricultural sector will not be able to compensate for those losses.
That is assuming there is no resurgence of the coronavirus in the second half of the year, reports the American trade magazine Successful Farming. These conclusions come from a new study by the American think tank Council for Agricultural Science and Technology (CAST).
The US agricultural sector will have a tough year ahead due to the coronavirus pandemic, causing some farmers to already stop or be forced to end their activities, economist Allen Featherstone said in the study report presented on Monday.
The profitability of production agriculture is under pressure in 2020 because of corona, but based on circumstances as of June 1, the sector has the financial strength to withstand the virus, Featherstone wrote. However, a second wave of infections leading to a halt of the US economy would cause further deterioration in the sector.
The publication of the report coincides with new corona quarantine measures in about ten states in the southeastern United States. In Florida, Georgia, Alabama, and Mississippi, the number of corona infections has increased sharply again, and earlier relaxations have been reversed. In several states, restaurants and schools have been closed again.
The CAST document includes reports from 29 experts in food and agriculture on topics such as food insecurity, rural health, and labor restrictions in meat and production.
Economist Jayson Luck of Purdue University said during a webinar that the meat shortages in April and May caused by coronavirus outbreaks in meatpacking plants can be seen as a capacity challenge. Meat production is highly concentrated in the United States and slaughter capacity is closely aligned with livestock farming.