Pandemic Puts Into Stark Relief Farming Policies That Need Changing

Townhall.com ^ | April 23, 2020 | Gerard Scimeca

[Kaslin]

An empty grocery shelf focuses the mind like nothing else. With COVID-19 disrupting supply chains and triggering higher-than-usual consumer demand, many of us have been shocked to find food staples in short supply. Although these shortages will resolve as supply chains re-boot, the main reason they will self-correct is thanks to the unsung heroes on the frontlines of the nation’s food supply: America’s farmers.

While the American economy has ground to a near-halt, farmers are still on the job, producing the vegetables, dairy, grains, meat, sugar beets and cane that bring us not just farm-fresh ingredients, but the many non-perishables that allow full pantries and fewer trips to the grocery store.

Farmers are aggressively deploying COVID-19 safety measures to protect employees – both permanent and seasonal. They are creating contingency plans for cows to be milked and crops to be picked in case key workers fall ill or must self-isolate. Put simply, farmers are making it their business to ensure the security of our food supply.

But even as they work tirelessly as federally designated essential workers, they face unprecedented challenges and a disturbing economic contradiction. Their labor is in maximum demand and is needed quite literally by the entire nation to get us through this crisis, and yet the farm products they produce are plummeting in price.

It was crucial to close schools, universities and bars and restaurants, but when those kitchens and cafeterias shut down, so did their robust orders for produce, dairy and meat. The drop in demand from these huge buyers has dramatically pushed down prices.

A recent analysis by the American Farm Bureau Federation (AFBF) shows that crop and livestock prices are falling to levels that will hit many farmers and ranchers hard, threatening the livelihoods of farmers and their employees. Soybean prices are down 10 percent, for example, while beef and pork futures prices have declined more than 30 percent since the beginning of the year. Corn has been hit especially hard, with a 40 percent drop in ethanol prices and a 15 percent drop in corn prices. Some ethanol plants have been forced to stop production, further depressing prices.

Dairy farmers are confronting a different kind of crisis. According to the National Milk Producers Federation, there is currently an estimated 10 percent gap between dairy supply and demand caused by supply chain upheaval, lack of demand from restaurants and consumers sheltering in place. Spring is high season for milk production and farmers are being forced to dump what they cannot sell. Milk futures prices have also fallen sharply, with the price for milk used to make cheese down 28 percent and the price for milk used to make nonfat dry milk falling by 34 percent.

A recent analysis by the American Farm Bureau Federation (AFBF) shows that crop and livestock prices are falling to levels that will hit many farmers and ranchers hard, threatening the livelihoods of farmers and their employees. Soybean prices are down 10 percent, for example, while beef and pork futures prices have declined more than 30 percent since the beginning of the year. Corn has been hit especially hard, with a 40 percent drop in ethanol prices and a 15 percent drop in corn prices. Some ethanol plants have been forced to stop production, further depressing prices.

Dairy farmers are confronting a different kind of crisis. According to the National Milk Producers Federation, there is currently an estimated 10 percent gap between dairy supply and demand caused by supply chain upheaval, lack of demand from restaurants and consumers sheltering in place. Spring is high season for milk production and farmers are being forced to dump what they cannot sell. Milk futures prices have also fallen sharply, with the price for milk used to make cheese down 28 percent and the price for milk used to make nonfat dry milk falling by 34 percent.

[Starcitizen]

How about starting with banning all Communist Chinese-owned food manufacturing, farms and other companies

[blam]

Pork Shortages To Strike America In Two Weeks

[volunbeer]

We should allow the ethanol racket to die now. Period. We never should have gone down that road and every study I have seen shows it will never do what they said it would and on top of that it is bad for engines.

Please let ethanol die. We are facing a major reset in the market and industry so there has never been a better time.

I don’t see any justification to continue it.

[ProtectOurFreedom]

Pork, chicken, eggs, and beer. This is looking bleak.

[ProtectOurFreedom]

“Some ethanol plants have been forced to stop production, further depressing prices.”

Finally...some GOOD news! Get back to gasoline being 100% gasoline and not a gasoline / corn blend.

[ProtectOurFreedom]

Ethanol has killed probably six carburetors on my small engines. That’s a $1,000 repair bill I never should have had to spend.

Yes, I should have poured in additives that fix that, but I always forget to do that.

[DannyTN]

Maybe they are there, but I didn't see any "Farming policies that need to change". Here's what I think:

1. We need to ramp capacity and always maintain excess capacity for packaging products for groceries as opposed to industrial.
   • There's a disconnect between the article saying Grocery demand is off 10% and stored shelves being empty. Milk and Eggs are still being limited one to a customer.
   • industrial/commericial demand is through the floor.
   • In a pandemic the pendulum swings from industry/commercial demand to Grocery stores. I see the pendulum slowly swinging back to industry/commerical as we recover. But I don't ever see a crisis that drops grocery demand below normal in favor of industrial/commercial.
   • The excess capacity needs to be on the grocery side.
2. We need improved policies about contamination of food products in a pandemic.
   • We've seen a number of meat packing plants close because of sick workers.
   • Makes me wonder if meat packing plants are the only one's being examined.
   • What about produce workers in harvesting, supply chain and grocery store?
   • What about the frozen food industry? Coronavirus can survive a couple of years frozen. Most of those foods you'll cook before eating. But what about Ice Cream? Popsicle's? Frozen fruit?
3. We need better guidance on decontaminating food in the home. I've looked at a number of articles.
   • They usually say no cases of food born transmission have been documented. :( Yeah, who's checking? It's so wide spread how would you know it was the groceries you bought 10 days ago?
   • Is anybody checking contamination levels of produce? or meat? or dairy? or frozen? Granola bars? Snacks? I'm not too worried about cans.
   • Guidance usually says don't wash produce with soap and water because the soap leaves residues. Are there no soaps that are safe? Is the harm from residues worse than CV?
   • Diluted Vinegar is sometimes recommended for cleaning produce but Vinegar is not supposed to be effective against CV?
   • Other alternatives, Hydrogen Peroxide?
4. Labor policies might need to be reviewed.
5. Imported food policies and labeling might need to be reviewed.
   • I cooked cooked frozen chinese foods for me and the kids last night.
   • And afterwards, I thought, where and when was that packaged? I hope that's not from Wuhan or China. I found the box and on one side it said "Distributed by". Oh crap! On the other side it said "Made in America". And I felt a wave of relief.
   • This would be a good time to override and WTO rules about not labeling country of origin.
   • Safety of various countries needs to be accessed. Incoming products need to be sampled for contamination.
6. Maybe we need guidance on individual products.
   • Is loose leaf lettuce more dangerous than head lettuce?
   • What about bagged salads?
   • Bagged greens cooked vs uncooked?

[sphinx]

Ethanol is a solvent for some rubber and plastic parts. (This is related to the reasons it burns cleaner in your car, by the way.) This was a problem decades ago for older engines. The fix is simple. There are other rubber and plastic compounds that are perfectly compatible with ethanol fuels. Manufacturers can easily make the switch. At this point, decades after we introduced ethanol to the U.S. market on a large scale, I would vent my frustrations on manufacturers who have failed to make the switch, not on the fuel.

[Pollard]

Our closest grocery store is a small place that’s part of a small, regional chain. They got wiped out at times. People staying home plus people from the city coming down to their recreational properties and hitting the grocery store on their way back to the city. This store has locally grown produce at harvest times and I just saw something new in their latest ad. Fresh grass fed beef, presumably local/regional. Other than that, booze made up most of the ad, another first. Frozen leg quarters and 73/27 grd beef were the only two fresh meat items. Last few times I’ve gone, beef selection was your choice between 73/27 or high dollar cuts of steak.

Back when Italy had empty shelves I did some shopping and pork for thew smoker was cheap so that’s mostly what I got. I meant to get out and buy a few beef roasts too but never made it.

Picked up a couple of meat goats, something that had been planned as a way to make a few bucks off the land. Not big or flat enough for cattle. At least if this bug comes back this coming winter, we’ll have a couple hundred pounds of goat meat.

This whole meat conglomerate thing just isn’t a good thing. Half a dozen companies, half of which, processing volume wise, are foreign owned.

[ProtectOurFreedom]

Ethanol absorbs water and eats rubber seals. There is ZERO economic or environmental benefit to adding it to gasoline. NONE.

It was a sop to the midwest corn farmers, nothing more. It confers no benefit to Americans to add it to gasoline.

Yes, engine manufacturers could have replaced the susceptible parts (the auto makers did), but WHY should they have had to do the when there is no benefit to the alcohol additive?

[Balding_Eagle]

I wished you had read the article before commenting.

[whistleduck]

No justification?? Think ADM. Geesshh! Think corn prices and attendant votes in the mid-west.

Never mind it uses more energy to produce a unit of ethanol than it creates. Now just look over here at .....

Adjust your thinking!

[USS Alaska]

How about starting with banning all Communist Chinese-owned food manufacturing, farms and other companies

If that happens, you may not be able to afford BACON!!!

[USS Alaska]

Yes, I should have poured in additives that fix that, but I always forget to do that.

So, a $1,000 doesn't jog your memory?

I guess a $1,000 not that important to you, so what, me worry?

[ProtectOurFreedom]

That was spread out over ten years.

[tired&retired]

Like China owning our food processing, i.e. Smithfield.

[Pining_4_TX]

They should start by ending subsidies and price supports that distort the market and keep marginal enterprises in business. Government interference in the market screws up everything.

Foundation for Economic Education
https://fee.org/articles/subsidies-hurt-recipients-too/

This also applies to welfare recipients. They lose their incentive to improve themselves because there is no penalty for wrong decisions. Welfare contributes to the number of homeless and addicts in the US. They can survive and feed their habit without working.

[USS Alaska]

That was spread out over ten years.

OK, just $ 100/year, what, me worry?

[ProtectOurFreedom]

Ok, maybe 15 years. Maybe 20.

That’s not relevant. The fact of the matter is we do not need destructive alcohol in gasoline. It raises prices, distorts markets, ruins things, causes environmental devastation, ruins crop land, and doesn’t help the air. Why do it.