Coronavirus, pandemic, global economy, agricultural sector
The coronavirus (COVID-19) pandemic is disrupting the global economy in unprecedented ways, and the agricultural sector is no exception. Prices of most commodities decreased since the pandemic began, which are affecting farm revenues and production costs. We assess the impact of COVID-19 on Arkansas field crop farms using the Representative Farm models, calibrated to the latest baseline published by the Food and Agricultural Policy Research Institute. The results show that COVID-19 decreases the net cash farm incomes of all five farms, increases the probability of having a negative net cash farm income, and increases the cost of commodity programs. Payments under the Coronavirus Food Assistance Program (CFAP) effectively compensate for the revenue losses due to COVID-19 projected for the 2019 crop for the five farms.
Durand-Murat, A., Stiles, S., Watkins, B., & Stark, C. R. (2020). Impact of COVID-19 on Arkansas Field Crop Farms. Research Reports and Research Bulletins. Retrieved from https://scholarworks.uark.edu/aaesrb/46