COVID-19 Impact on the U.S. Agricultural Sector

Michael Gunderson, PhD , Blaine Nelson and Tom Karmel

APR 21, 2020

We find the evidence suggests the primary impact of Covid-19 on the U.S. agricultural sector will be (1) reconfiguration of the value chain to accommodate dining at home rather than dining away from home, (2) reduced demand for ethanol, and (3) the potential for reduced trade in the short term due to labor constraints as officials try to slow the spread of the disease. This may disrupt cash flows and pressure commodity prices. We currently do not, however, anticipate a significant negative long-term impact on the U.S. agricultural sector.