Update on Ag’s Bottom Line Amid COVID-19

The spike seen for retail meats was short lived. According to reports, the spike, while beneficial to the industry, does not make up for the losses seen from the restaurant market. Jayson Lusk, Ag Economics Professor at Purdue University, claims, “More than half of our food spending is away from home, about 54 percent. While we are moving more through the grocery store, its probably not enough to offset what were loosing.”

Compared to last month, meat sales have plateaued. Egg prices have skyrocketed, almost 300 percent. Corn and soybean markets have seen heavy lows, but this can be attributed to logistical issues and transportation hindrances. Another reason for the downward trend of corn markets is due to individuals not on the road because of self-quarantining and stay-at-home regulations.

According to James Mintert with Purdue University, “Even after we start to bring the economy back online, we are not likely going to see an immediate rebound. We are going to be in a recessionary environment for extended period of time and that’s going to take its toll on fuel demand and ultimately ethanol demand.”

For more information click HERE.

For all updates on the Coronavirus and how it impacts Rural America, visit our Coronavirus outbreak hub.