NEW: Numbers show devastating impact on Iowa Ag from Covid-19

In this study, we estimate the COVID-19 outbreak’s revenue impacts on some of Iowa’s largest agricultural industries. We estimate overall annual damage of roughly $788 million for corn, $213 million for soybean, over $2.5 billion for ethanol, $658 million for fed cattle, $34 million for calves and feeder cattle, and $2.1 billion for hogs. As more data become available and as the pandemic evolves, these estimates will certainly change, but for now they represent our best assessment of the impact on these industries.

Introduction

The 2019 COVID-19 outbreak, in terms of the suddenness of onset, the communicability of the disease, and its immediate stress on market and health infrastructure, is the most far-reaching public health crisis the United States has faced. For the first time in U.S. history, governors of all states and four U.S. territories have declared statewide emergencies, and 52 states and territories have deployed the National Guard.1The speed and scope of the deadly outbreak is devastating, and not just from a health perspective. As countries around the world have sought to limit the spread and severity of COVID-19 outbreaks, many have set up temporary policies to prevent or slow the transmission of the disease. Most of these policies revolve around social distancing—creating space between individuals to limit transmission. With COVID-19, public health officials have stressed a six-foot buffer zone around non-healthcare, non-household individuals. To enforce social distancing, governments have urged, and in several cases ordered, citizens to stay at home, only allowing trips for basic and necessary supplies and services. State governments have also regulated the shutdown or slowdown of non-essential businesses, for which each state determines its own definition.

These policies appear to work in reducing the rate of infection, but they severely curtail economic output and restrict demand. They also force significant changes in the ways people obtain and use basic goods and services. Agriculture is one of many sectors reshaping itself in order to function in this new economic environment. Iowa’s crop industries depend on three major uses: livestock feed, biofuels, and international sales. International sales fulfill other countries’ food, feed, and fuel needs; thus, we concentrate on how the COVID-19 outbreak has affected food, feed, and fuel use.

The report goes on with all kinds of descriptive charts and graphs, and you can see it all here.


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