Question

There is a shortage of farmers during covid... give the reason and also a solution

Answer 1

Answer:

Markets and farm prices. As we see growing levels of concern, recommendations for social distancing, reduced travel, avoiding crowds, closures, and other protective practices to slow the spread of COVID-19, consumers will be making tough choices about food, eating away from home, and overall spending. Dairy is prominently featured in out-of-home eating, and there may be some disruptions in food service sales. This will likely have an impact on markets and prices. There have also been bottlenecks at ports in other countries as ships wait to be offloaded with U.S. dairy and other farm products. The Chicago Mercantile Exchange has shut down floor trading of all products until “further notice,” though electronic trading will continue.

Concerns about the impact of the virus on the broader economy are likely to have an even larger impact on dairy prices. Many countries of the European Union were already hovering just above a recession prior to the viral outbreak and this event is likely to push them over the edge. Prior to this event, China was also experiencing slower economic growth. The U.S. has enjoyed strength in the economy, but there have been leading indicators prior to pandemic concerns that suggested that we were past the peak of the business cycle and that an economic slowdown, or perhaps that a recession was coming. A worldwide recession, like the one experienced in 2008-09, would push the previously expected milk price recovery off for at least another year.

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