Give and take in the farm economy from COVID-19
An ag finance expert says there is some give and take in the farm economy as COVID-19 impacts agriculture sectors differently.
During a University of Illinois farmdoc webinar, Nate Kauffman with the Federal Reserve Bank of Kansas City, pointed out areas of concern including the cattle and biofuels industries as well as hits to off-farm income.
“You could see some weakening in the farm economy just to the extent that maybe there is a spouse that normally works off the farm to provide income to help support the farming operation, especially if you are located close to a large city where there has been a sharp pull-back in activity connected to the service sector.”
But he says there are a few areas that are playing out more positively including the steadiness of land values and the supply chain.
“I’ve not heard anyone say that there have been disruptions in terms of delivering product as it relates to the supply chain. It has been stretched and they are doing all they can to keep up.”
Kauffman says future impacts are highly uncertain, but their preliminary data shows farm income and farm loan repayment rates are expected to weaken in the next three months.