Coronavirus impact on US cattle industry tipped to reach $14.6bn
Its full economic impact report, compiled by Brett Crosby of Custom Ag Solutions and BeefBasis.com predicts that the cost will be more than $14.6bn.
The analysis, which focuses on the effects of coronavirus on the three primary sectors of the cattle production chain: feedlot, backgrounding, and cow/calf, is based on prices during the Spring, with Crosby warning that it likely understates the financial impact rather than overstates it.
The full report can be found here.
In a statement, USCA president Brooke Miller said: “The impact of the COVID-19 pandemic on the US cattle industry cannot be overstated. This report highlights just how severe those losses will be. Specifically, Mr. Crosby's report breaks out the steer and heifer price forecasts, differentiates between spring and fall calves, and values stocker calves by marketing date rather than weight to account for the effect on operations that run grass calves and market in August.”
Miller also welcomed the recommendations set out by Crosby. “Further, the report offers recommendations for funding distribution models. For cow/calf producers, it suggests an average per-cow funding basis for cow/calf producers of $127.08 broken out by spring and fall calving cows and accounting for heifer retention. For stockers and backgrounders, the breakout would be on a per-head basis, regardless of sale weight. The breakout between spring and summer calves can be based on sales receipts, with June 1 as the date determining marketing class. Feedlot sector payouts would then be based on actual receipts and/or feed receipts.
“All payments would be based on the inventory each operation had as of February 15, and verification could include: sales receipts; balance sheets submitted to banks; inventory appraisals by certified appraisers or lenders; brand inspections; and vet records.
“USCA's COVID-19 Producer Task Force has spent the past month diligently working with Congress and the Administration on developing temporary, short-term relief for cattle producers experiencing losses related to the current coronavirus outbreak. We'd like to thank these volunteer members for their time and efforts in improving the state of the US cattle industry.”
