News Corona crisis
Trump buys $3 billion worth of products
US President Donald Trump announced last Saturday that the state is buying $3 billion worth of agricultural products. The products are used for the 'Farmers to Family Food Box' initiative.
In mid-April, it was announced that the United States (US) would use a portion of its $19 billion agricultural emergency fund for the buying up agricultural products† Until last weekend, the details of the plan were unknown, nor was it known how much money would be involved. Trump broke the silence on Saturday (May 9) and announced via Twitter that the US government will buy $3 billion worth of products next week.
Farmers to Family Food Box
The purchased products are used in the 'Farmers to Family Food Box', an initiative of the American government. $100 million in fresh fruits and vegetables, $100 million in dairy and $100 million in meat is purchased each month, according to the United States Department of Agriculture (USDA).
In this initiative, the US government is working with local and regional food producers such as dairy, beef and arable farmers. The aim is to reduce food waste by making the products available to non-profit organizations such as food banks.
Food surplus
The US agricultural sector has been hit hard by the corona crisis. Products are forced to be destroyed or washed away because food demand has shrunk considerably compared to the 'normal' situation. Many agricultural entrepreneurs are facing bankruptcy.
After years of bad prices and skyrocketing costs, a good year was desirable for the American dairy industry. Until the corona crisis broke out, 2020 looked promising. Unfortunately, the sentiment has completely turned and more and more dairy farmers are throwing in the towel. It is also a difficult time for the meat industry. Several meat factories across the country have been closed due to coronavirus outbreaks among staff. Arable farmers now face huge surpluses.
Jorine Cosse
© 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.