COVID-19 outdates new FAPRI ag outlook numbers, triggers potential recession
University of Missouri’s Food and Ag Policy Research Institute just released its annual US ag market outlook, but their director says coronavirus impacts have already outdated their numbers and put the US in line for a potential recession.
Pat Westhoff tells Brownfield reaction to dips in the stock market and unemployment because of temporary business closures are making a potential recession a reality. As for what that might look like for farmers, he says current market trends are a good indication.
“Probably weaker demand for meat in general, especially those that are consumed at restaurants. There is less demand for livestock, which means ultimately less demand for grains as well. We might have less summer driving than what might have occurred otherwise and that probably means less demand for ethanol.”
He says their outlook highlights potential impacts from the phase one trade deal with China, but those could easily change as well.
“So even if we get some positive benefits from the phase one agreement with China, those could be overwhelmed by some of the impacts from this situation.”
Westhoff says FAPRI-MU plans to monitor the impacts and provide an updated outlook as more data becomes available.
Listen to our interview with Westhoff to hear details of the report, including potential impacts from trade with China:
Interview with Pat Westhoff