University of Kentucky Agricultural Economist Will Snell says the state’s farming economy could take a half billion dollar hit related to coronavirus.
Snell was one of three ag economists offering insight into 2020 farming during a remote session last week. He noted adjustments in production can be more challenging on the farm than in the factory. “In agriculture, it’s not like a factory. Not like over at Toyota where all of sudden retracts, that they can stop that assembly line. We can’t tell that Holstein cow not to produce that milk or that steer or pig that’s ready for slaughter to go on a diet,” said Snell.
Snell said there was some optimism tied to trade deals at the beginning of 2020. But, the ag economist added the effects of COVID-19 have changed that scenario. Much of the financial hit to AG is connected to the idling of restaurants over long periods of time.
UK Ag Economist Kenny Burdine said the end of April, first part of May was very difficult in Kentucky’s livestock arena. “Calves off probably 100-125 dollars a head. Heavy feeders probably somewhere in the 125 to 175 range. Hogs were down I would say were down probably somewhere 30 to 50 dollars per head. All those have rallied some since that bottom, but certainly the cupboard is still down quite a bit,” explained Burdine.
Burdine said consumers haven’t seemed to be overly price sensitive during this time. The ag economist noted the question remains how much impact will persist once there is a full re-opening of businesses.?
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