Recent ethanol plant closures and production slowdowns open up the possibility of demand destruction in corn used for ethanol beyond current projections. Some of the latest predictions saw very dire consequences with upwards of one billion gallons of lost ethanol production in 2020. The worst-case scenarios, like most dismal predictions for the economy, depend on […]
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. Almost a third of U.S. pork capacity is down, the first big poultry plants closed on Friday and experts are warning that domestic shortages are just weeks […]
Bloomberg writers Michael Hirtzer and Isis Almeida reported this week that, “First, it was just one plant shutting down. But now, it’s at least seven major U.S. meat facilities that have seen halts in the space of a few weeks. And all those voices previously assuring Americans that supplies would be fine now sound like a chorus […]
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. “Iowa Governor Kim Reynolds said 250 National Guard members have been moved to full-time […]
Soybean crush pace picked up substantially in February and March. Crush remains a bright spot for soybean use as exports continue to disappoint. The USDA raised the crush forecast in April to 2.125 billion bushels, up 20 million bushels over the March forecast. Disruptions in meat supply chains, both foreign and domestic, may blunt further […]
U.S. Secretary of Agriculture Sonny Perdue today announced the Coronavirus Food Assistance Program (CFAP). This new U.S. Department of Agriculture (USDA) program will take several actions to assist farmers, ranchers, and consumers in response to the COVID-19 national emergency. President Trump directed USDA to craft this $19 billion immediate relief program to provide critical support […]
The Creighton University Rural Mainstreet Index (RMI) plummeted in April to its lowest level since beginning the survey in January 2006. According to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy, this represented the second straight record low with a reading well below growth neutral. […]
Recent declines in corn and soybean prices will result in lower marketing year average prices (MYA) prices, increasing the probability and potential size of 2019 Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) payments. These commodity title payments, to be received in October 2020, will provide farms with additional cash flows. However, PLC and […]
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. “The spread of the virus through the food and grocery industry is expected to cause disruptions in production and distribution of certain products like pork, industry […]
Farm business owners, along with other self-employed individuals and sole proprietors, are eligible for the Paycheck Protection Program (PPP), a program authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act that is administered by the Small Business Administration (SBA). Under this program, a farmer or other small businesses can receive a loan up […]