How a Recession Could Impact the Dairy Industry
2020 has been off to a bit of a rough start for almost all of us. This is especially true for farmers and other professionals currently working in the dairy industry. Even prior to the onset of the COVID-19 pandemic, the US dairy industry was struggling to stay afloat. Now, with economists warning us with an inevitable recession, dairy farmers across the US are preparing for even more difficult times ahead.
As experts in farm financing, our customers are regularly asking us about the impact that a recession might have upon the dairy industry. This article will provide you with the need-to-know facts and what you should be prepared for.
A Brief History of the Dairy Crisis
Fundamentally, the current dairy crisis can be traced back to the fact that Americans simply aren’t drinking as much milk. In recent years, lactose-free alternatives – such as almond milk and soy milk – have come to dominate a significant portion of the beverage industry. One of the consequences of this has been the steady decline in the cost of milk and dairy products.
In an effort to compensate for their lost revenues, thousands of US farmers have been desperately kicking up production. Ultimately, however, this has backfired. Now there’s a surplus of milk and dairy products, which has driven down the prices of these commodities even further.
Dairy Industry Braces Itself for a Possible 2020 Recession
As the coronavirus pandemic continues to escalate, markets have been in a continuous state of frenzied panic – and steady decline. In recent weeks, economists have begun to sound the alarm of an impending global recession which could hit by mid-2020. For the dairy industry, this will be adding strain to an already-stressed economic situation.
The forecasts for how the dairy industry might be affected are, frankly, pretty bleak. As of mid-March, most experts agree that milk prices could fall by as much as 20%.
Leveraging Ranch Refinancing to Protect Your Property
With difficult economic times ahead, many people are looking for cost-effective ways to protect themselves and their property. That’s where ranch refinancing comes in. By refinancing your ranch, you can take a major step towards paying off your mortgage.
Shop for Ranch Refi Options Today!
MSF Agriculture has the expertise and resources that you’ll need to secure a high-quality ranch refi option. Contact our office today to get started!