Farm Bureau: Crop, livestock prices in a tailspin
Nearby futures prices for crops and livestocks are in a tailspin, the American Farm Bureau Federation Market Intel service said in a report released late Tuesday.
“The drop in demand is pushing the prices farmers would get paid for their crops to lows that may make it very difficult for them to justify putting another crop in the ground this spring,” Farm Bureau Chief Economist John Newton said in a news release. “While the whole country is optimistic there is an end in sight, the question of when the economy will be healthy again is fueling further market uncertainty.”
“It’s worth noting that these prices are in no way tied to what shoppers pay in the grocery store,” Newton added. “There are a lot of hands through which these commodities pass from the farm to the fork, so a drop in prices paid to farmers very rarely, if ever, translates into lower consumer prices immediately.”
The year kicked off with a cattle inventory estimated to be down 2%, thanks to a 2021 calf crop down 2.3% from the previous year, due largely to the pressures brought on by drought and…