Jennie Zwagerman, Director of the Agricultural Law Center & Assistant Professor of Law at Drake University, spoke to the group on the effects of COVID-19 and the Derecho on Iowa’s agriculture industry. Zwagerman stated that farmers have had a several tough years. Crop prices are low, ethanol production is down, trade troubles with China and Mexico have put farmers in financial bind. Coronavirus and the recent derecho compounded the issue.
The August derecho damaged approximately 43-50% of the farm land in Iowa. The timing of the event could not have been worse. Crops in August are nearing maturity and will not “bounce back” like the would have in spring or early summer. The derecho also damaged silos, grain bins and elevators across the state reducing storage capacity by approximately 57 million bushels. This will negatively affect a farmers’ bottom line. With less grain storage available, farmers will be forced to sell at a lower price or look at shipping grain out of state.
Behind the health care industry, the agriculture industry has the most “essential” workers during the Coronavirus pandemic. Zwagerman stated that, as an industry, the coronavirus exposed a number of things that need to be improved, especially worker safety and food safety at the retail level. The impact of coronavirus on farmers can be seen through a reduced demand for their products and the cancellation or modification of their contracts. Pork producers have been hit hardest due to the pork production cycle. Transportation costs and the shut down of railroads have also had a major impact on the ag. industry. Zwagerman reported that while stimulus payments are helping; everyone in agriculture is suffering and the future is uncertain for all.
For more information contact: jennifer.zwagerman@drake.edu
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