Dealing With Financial Management During COVID

With people out of work, and some businesses still closed, the pandemic has a far-reaching economic impact.

The uncertainty of COVID is impacting many areas of society, including our ag economy and food supply. Agricultural economist Aaron Smith is developing plans for Tennessee farmers to get through the coronavirus situation, from a financial management standpoint.

Smith says that when farmers are hurting, we all feel the impact, especially rural communities. “Anytime you see a producer or farmer’s income drop down, then all of a sudden maybe they’re not going to go out and they’re not going to buy that new tractor, and that affects not only the farm dealership, but their employees, and they’re maybe not going out and spending money in the economy,” according to Smith.

For many, COVID is having a negative impact on personal finances. Chris Sneed with UT Extension’s Family and Consumer Sciences says that now is the time for families to have a very disciplined budget. He states, “The first thing a family has to do is really sit down and say ‘where are we financially? What money do we now have coming in and what do our debt obligations look like?’ Even if you’ve had a reduction in income, you still need to put together a budget so you can have a plan.”

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