Here Are 6 Potential Impacts of COVID-19 on the Agriculture Sector

But what about the agricultural sector?
According to Agriculture.com, Mark Stephenson and Dr. John Shutske of the University of Wisconsin-Madison say there are six specific things farmers, farm families, agribusinesses and employees should be watching and planning for.
1. Commodity and farm prices.
As we see increased levels of concern, recommendations for “social distancing,” reducing travel, avoiding crowds, and closures and other protective practices to slow the spread of COVID-19, consumers will make difficult choices about food, eating out, and overall spending.
Dairy products are prominently featured in food away from home, and there could be some disruption in food service sales. That will likely impact markets and prices. There are also backups at ports in other countries as ships wait to be unloaded with U.S. dairy products and other agricultural commodities. The Chicago Mercantile Exchange has closed all trading floors until “further notice,” though electronic trading will continue.
Concerns about the impact of the virus on the broader economy are likely to have a bigger impact on milk prices. Many countries in the European Union were already flirting with recession before the virus outbreak, and these events will likely push them over the edge. China was also experiencing slower economic growth before these events.
The U.S. has enjoyed strength in the economy, but there were leading indicators before the pandemic concerns that suggested we were past the peak of the business cycle and that an economic slowdown, or possibly even a recession, was coming. A worldwide recession, like the one experienced in 2008-09, would push out the expected recovery in milk prices by at least another year.
2. Slowdowns and shortages in supply chains.
As logistics are disrupted and efforts continue to slow the spread of the virus, sectors across industries that are interconnected are already being impacted. With some products, “panic buying” is creating additional concerns. As an example of a supply chain disruption in agriculture, the American Veterinary Medical Association (AVMA) is advising that there could be potential shortages of animal pharmaceuticals from at least some of the larger drug manufacturers. If the virus spreads more broadly in agricultural states like Wisconsin, we could see issues with the delivery and pickup of farm products as workers – milk truck drivers, for example – stay home because they are sick or because they are caring for sick family members or school-age children. The same concerns would affect processors. Slowdowns could also impact fertilizer, fuel and other input deliveries, and availability as we head into spring. In extreme cases, there could be issues with utilities – electricity, natural gas, propane – based on input availability or workforce shortages. However, utility companies generally do a good job of contingency planning that should help protect against the impacts of unforeseen events.
3. Farmer health.
Across the Midwest, farmers are a relatively older population, compared to the general working population. The 2017 Ag Census shows the average age of farm operators is nearly 58 – at least a decade older than workers in most other sectors. And, unlike workers in other industries, 26% of farm operators are 65 years of age or older. A full 11.7% of principal U.S. farm operators are 75 years of age or older.
Data from other countries that have done more widespread testing suggest that COVID-19 has a much higher severity rate for those in their 60s and older, meaning the prevention and protection recommendations from the CDC and state (and local) public health experts are especially important for the farm population in the U.S.
4. Farm labor.
Even if the infection rate in the general population remains relatively low, it is likely we will see some workers who eventually get sick. But perhaps more importantly, even if infection rates remain low (in the single digits), it is very likely that workers will need to be off work, especially with school closures and/or workers needing to stay home to care for sick or elderly family members. Fear of those occurrences and misinformation can also lead to higher absenteeism.
5. Worker safety and personal protective equipment (PPE).
There are shortages of PPE and other protective gear that are vital to safely operating farms and keeping workers and animals healthy. As a result of current demand by the health care industry, N-95 respirators are in very short supply (likely needed this spring to handle dusty grain as a result of less than ideal harvest conditions last fall). There are also reports of concerns about the availability of protective gloves that are now common on dairy operations as a way to protect milk quality and protect animal and human health.
6. Other disruptions.
Sparse populations and less frequent travel may provide some natural social distancing for rural communities, but there are challenges that rural residents may face. Many gathering places, such as schools and churches, are closed and normal routines and events have been disrupted. Instead, in some areas and for high school and college students, classes and services are being taught and conducted online. This could be difficult for some rural residents, as high-speed internet service is not available in all areas of the country, including some of our communities with strong agricultural bases.
Only time will tell the severity of the impact on agriculture from the novel coronavirus, Stephenson and Shutske say. They urge everyone to take reasonable precautions to limit the spread of the disease and its impacts on your business and your life. They say stockpiling farm supplies is not recommended and can cause bigger problems for the industry, and that thoughtful purchasing of needed inputs can minimize disruptions to your operation. Stay informed, listen to experts, and follow the recommendations from federal, state, and local agencies and authorities.