How the Coronavirus Is Impacting the Cattle Industry
The coronavirus pandemic poses a very real threat to the stability of the US agricultural industry. And that, in turn, could potentially jeopardize the food supply chain that every American relies on.
As the crisis continues, major meat processing and distribution companies have come under increasing economic pressure. Tyson, for example, has expressed serious concerns about the possibility of having to dispose of “millions of pounds of meat.” This could lead to a dire food waste problem as well as a serious shortage of meat throughout the US.
If you’re a farmer, you undoubtedly have concerns about the economic pressures that are being felt by the agricultural industry. This article will outline the need-to-know facts about the meat crisis and how ranch refinancing can keep your property secure.
Coronavirus Pandemic Forcing Closure of Meat Processing Plants
Faced by strict social distancing mandates and economic instability, hundreds of US meat processing plants have been forced to close. Normally, these plants have thousands of chickens, cows, and pigs every day.
Livestock ranchers are now left with no one to sell their animals to. Very soon, this could force cattle ranchers across the country to dispose of huge numbers of animals. Eventually, the problem of animal overcrowding and overpopulation on farms will reach a tipping point. In such a scenario, the US government may be forced to step in to help farmers kill their livestock.
A Vicious Economic Cycle
As long as the slaughterhouses are closed down, farmers may have no other choice but to dispose of their animals. This will result in the loss of millions of pounds of meat that would otherwise be destined for supermarket refrigerators. And this, in turn, could jeopardize the US food system itself. The only viable solution would be for the meat processing and distribution industry to reopen and resume business as usual. And this, unfortunately, doesn’t seem likely to happen as long as the nation remains in the grips of the pandemic.
Keep Your Business Protected with Ranch Refinance
The bottom line, then, is that cattle ranchers should build individual financial strategies to help protect their business and property. Until the industry recovers (and no one knows when that’ll be), it’s important to take emergency precautions with your finances. Thankfully, ranch refinancing can provide you with loan repayment options that fit your budget.
Shop for Ranch Refinance Options Today
At MSF Agriculture, we know that this is an unprecedentedly challenging time for small ranchers in the US. That’s why we’ll pair you with a ranch refinance program that’ll be a good match with your needs and business model. Contact our office today to get started!