COVID-19 Losses Building for Producers and Equipment Manufacturers

MILWAUKEE, WI – Producers, and economists might wonder whether the general farm economy could have improved this year, but thanks to the COVID-19 pandemic, they’ll never know. Back in February, USDA projected a $3.1 billion increase in net farm income. Since the outbreak, however, the government has not reissued an updated forecast but researchers at the University of Missouri’s Food and Agriculture Policy Research Institute (FAPRI) have. According to a report from the Agricultural Equipment Manufacturers (AEM), FAPRI is expecting an 11 percent drop for farmers and ranchers in 2020. Not only will this hit farmers and ranchers in the United States, but it’s expected to affect equipment manufacturers and dealers as well. Based upon the latest “U.S. Ag Equipment Forecast” from Oxford Economics, their forecast calls for a 15 percent decrease in gross U.S. ag equipment output in 2020, followed by a strong rebound in 2021.
(SOURCE: Association of Equipment Manufacturers)