How Severe Weather Passes Costs Down the Food Chain

 

Crops are always at the mercy of the weather, but 2019 has brought a once-in-a-generation challenge to American farmers. Coupled with the ongoing trade war with China, this year poses unique and daunting problems for the industry, and uncertainty about what the growing season will yield. For some farmers, turning a profit this year seems to already be out of the question.

“We’ve seen an immediate price reaction due to the delayed plantings and the concern about how much is being lost right now. So, there is an immediate hit, but at the same time too, most of the loss of production won’t be realized until late this summer or this fall,” Dr. Chad Hart, Associate Professor in the Department of Economics at Iowa State University said.

Hart said farmers can try to mitigate the damage by bringing some production indoors but are largely exposed to the flooding and consistent rain experienced in the Midwest this spring.

The planting season is nearing an end for two major crops, soybean and corn, which are planted in a larger total area than any other in the United States. These are also used for livestock feed, which could have a domino effect across the agriculture industry, and shutter investment in new farming products. This will be felt by equipment manufacturers and eventually grocers and consumers.

“We do have a significant amount of land that can’t get planted this year. That basically blocks those farmers out of at least making income off crops this year. So, you’re looking at lowered income across a wide swath of U.S. agriculture here, and that means less money to spend on improving that equipment,” Hart said.

For the latest news, videos, and podcasts in the Food & Beverage Industry, be sure to subscribe to our industry publication.

Follow us on social media for the latest updates in B2B!

Twitter – @FoodMKSL
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

Follow us on social media for the latest updates in B2B!

Image

Latest

Construction of the HPC Data Center is Prime Destination for AI Progression
May 17, 2024

As digital infrastructure continues to evolve, the strategic development of data centers is crucial. A recent update from Applied Digital celebrates the progress of the company’s HPC Data Center in Ellendale, North Dakota, positioning it as a pivotal player in the advancement of AI technologies. Highlighted in this special video is the HPC Data…

Read More
Nick Phillips of Applied Digital talks community engagement
Community Engagement is Key for Companies Aiming to Support and Impact Local Communities
May 17, 2024

Corporate responsibility is under the microscope but Applied Digital readily stands out for its positive impact on local communities. As part of the broader discussion on community engagement and economic development, there are several things companies can do to contribute to local prosperity. For a special episode for Applied Digital, Nick Phillips, EVP of…

Read More
Ellendale HPC Datacenter
Ellendale HPC Datacenter
May 17, 2024

The shell of our groundbreaking Ellendale HPC Datacenter is nearly complete! With each panel and beam, we’re closer to launching a hub with unmatched AI capabilities, designed for high-density computing. Watch as we shape the future of AI infrastructure

Read More
Sunstone Partners’ 2024 planning and strategy
Sunstone Partners Offsite 2024
May 17, 2024

Sunstone Partners’ 2024 planning and strategy meeting was held offsite in Calistoga, CA this year.  During the event the team bonded in fun activities like wine making and fantastic meals.  On the business side, there was reflection on the significant accomplishments of the team for the year, as well as focusing on upcoming goals…

Read More