Can American farmer sing out corona time?

Arable farmers who give away their potatoes for free, growers who dump their onions, dairy farmers who are forced to wash their milk away. These are the bitter consequences of the corona crisis in the United States. Meanwhile, President Donald Trump is optimistic.

The US president has responded to a US epidemiologist's warning that a combination of common flu and corona next fall could have even greater consequences than the current pandemic. “Maybe the virus won't even come back at all,” Trump said. “If it comes back, we're not going to go through the same thing we've been going through the past 2 months. We are much better prepared and are taking precautions.”

At the same time as his statements about the return of the coronavirus, Trump took a stand against the governor of the state of Georgia, who decided to allow some non-essential economic activities again. “It is still too early for that. We just have to be patient."

US agricultural hit hard
The question is whether the agricultural sector in the US can survive that time. The sector has been hit hard by the corona crisis. The government therefore announced a $19 billion bailout package. This will in particular reduce the burden on livestock farmers in the country. Slaughterhouses in the US are currently facing closure due to staff shortages due to the coronavirus outbreak. 

Free potatoes
Dairy farming is also being hit hard. The nation's largest dairy cooperative, Dairy Farmers of America, estimates that farmers drain 3,7 million gallons of milk every day. And despite the increasing demand from the retail sector, vegetable growers and arable farmers are also having a hard time. Exports are under pressure and demand from the catering industry has virtually come to a standstill.

Earlier, an Idaho onion grower reported almost 500 tons dump onions and he is not alone in making such decisions. Millions of kilos of fresh products have become unsaleable. So an Idaho farmer is giving away about 2 million chips potatoes for free so they don't go to waste. "First come, first served."

Impending bankruptcy
Normally, the potatoes are sold as chips through supermarkets and the catering industry. Ryan Cranney of Cranney Farms: “People are staying at home, restaurants are closed, causing our market to disappear. Many factories that process potatoes have had to close their doors and the storage facilities are full.” The entrepreneur fears that if the situation does not turn around quickly and continues for a few more months, many agricultural companies will go bankrupt.

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.