According to an updated economic analysis by the American Farm Bureau Federation, crop and livestock prices are falling to levels that threaten the livelihoods of farmers and ranchers. Since the beginning of the year, both beef and pork futures declined more than 30 percent. Farm Bureau Economist Michael Nepveux says the cattle markets are on a roller coaster. “There’s lots of uncertainty. That’s what’s driving the volatility we’re seeing in the market beyond fundamentals. We really don’t know where we are in the coronavirus outbreak and how long social distancing will continue,” explains Nepveux. “We’re very likely going to go into a recession.” Milk futures prices have also fallen sharply with the price of milk used to make cheese down 28 percent. The price of milk used to make nonfat dry milk is falling by 34 percent. The USDA has funds to help farmers and ranchers get through the coronavirus challenges, but at this time, Nepveux says it’s unknown what the programs will be and how the aid will be distributed.
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