Effects of Coronavirus on U.S. Ag Industry
These are extraordinary times that we are living in. As the coronavirus pandemic spreads around the world, entire industries are being forced to adapt, or temporarily shut down. Education has gone almost entirely online. Healthcare is being pushed to the absolute limit. Restaurants have had to close their doors for an indeterminate length of time. In times as uncertain as these, there’s one major question on the minds of farmers everywhere: what effects will this crisis have upon the agricultural industry?
As experts in farm refinance, we hear a lot of concern around this topic. In this article, we’ll discuss some possible outcomes of how farms may be affected as well as the benefits of refinancing.
What Happens When a Pandemic Meets an Already-Struggling Industry?
The agricultural industry has been struggling since the onset of the trade war with China in early 2018. Now that coronavirus is threatening the global economy, farmers are justifiably worried about what the next few years will look like.
The pandemic has come just months after the Trump administration signed “phase one” of a new trade deal with China. Phase one mandates that China will buy $200 billion worth of U.S agricultural products in the next two years. Understandably, many farmers and business leaders were thrilled about the new deal’s prospects for rebuilding the agricultural industry.
While nothing has been explicitly cancelled, an economic recession could hinder the future prospects for that deal.
What Are U.S Farmers Doing to Prepare?
At this point, it’s unclear how the coronavirus pandemic will affect the new deal between the U.S and China. On the one hand, both economies might sail through the current crisis and proceed with the new deal as planned. On the other hand, shipping and distribution systems could be totally shut down to prevent the spread of the virus. It’s also possible that new and strict regulations on trade could be implemented to protect national borders. Anything’s possible at this point, and farmers will be watching the news eagerly in the ensuing weeks and months.
What can be said with certainty is that this is an economic crisis that will affect everyone. With that in mind, it’s prudent for all farmers to ensure that their future finances will be protected. Securing a farm refinance through MSF Agriculture is a great place to start!
Get Started with Farm Refinance Today!
MSF Agriculture provides owners of small farms with the advice and resources they need to stay financially secure. Learn more about the benefits of farm refinancing. Contact our office today!