Could economic fallout of COVID-19 include a recession?
Some analysts believe the economic fallout of the COVID-19 pandemic will include a recession.
Bill Moore is chief risk officer for Compeer Financial, a farm credit cooperative based in the Upper Midwest.
“If you look at the lack of activity that’s going on in the marketplace, it is highly likely that we’ll have a recession. Probably starting later this quarter (and) going into the second quarter of this year.”
He tells Brownfield certain industries would be hit harder than others. For agriculture, he’s concerned about labor-intensive businesses in the dairy, beef, and swine sectors.
“To the extent that we get through this in a short period of time, I think the grain sector could possibly skate its way through. As long as the virus doesn’t continue to hang over the country for an extended period of time.”
Moore points out a weaker Dollar is friendly for U.S. ag exports. But he says the question during the outbreak will be what will demand look like?