Analysis: Nebraska agriculture’s COVID-19 losses could approach $3.7B
An analysis conducted by Nebraska Farm Bureau indicates Nebraska’s ag economy could face nearly 3.7 billion dollars in losses in 2020 because of COVID-19, if economic conditions do not improve.
Farm Bureau economist Jay Rempe says, to provide some perspective, 3.7 billion is more than 80 percent of the state of Nebraska’s entire budget.
“So it looks like, if nothing else were to change for the rest of the year, we could be looking at some significant lost revenues in the state of Nebraska for agriculture,” Rempe says.
The analysis shows a potential estimated loss for the beef cattle sector of nearly one billion dollars, with corn and soybean losses combining for nearly 1.2 billion. Potential losses for the ethanol sector could reach 1.3 billion dollars, assuming Nebraska’s ethanol plants are unable to run at more than 75 percent of capacity for the remainder of the year.
Other potential losses include pork at 166 million, dairy losses at 66 million, and wheat at nearly nine million.
Rempe says the analysis does not account for any financial assistance farmers and ranchers may receive through state and federal COVID-19 relief programs.
AUDIO: Farm Bureau webinar excerpt with Jay Rempe