JONESBORO, Ark. (KAIT) - The COVID-19 pandemic has wreaked havoc for farmers, but rice may provide a buffer.
According to our content partner Talk Business & Politics, agricultural economists say corn and cotton could be hit hard through 2023.
“COVID-19 has affected commodity prices globally by disrupting the supply and demand of agricultural commodities in unprecedented ways,” Alvaro Durand-Moat, an Arkansas agricultural economist, said.
A study done at farms across the state showed lower net cash incomes due to COVID-19 between 2019 and 2023.
“Corn and cotton would experience the largest decreases in prices in the short term,” said Durand-Morat.
However, he also added that the price of long grain rice would increase.
“As a result of COVID-19, the price of long-grain rice in the U.S. is projected to increase by 4.8% and 3.3% in 2020 and 2021,” added Durand-Morat.
One upside to the study was that the adverse effects of this virus will likely be offset by payments from the Coronavirus Food Assistance program.
Arkansas Ag producers have received over $93 million of direct payments through CFAP.
Enrollment in the program ends Aug. 28.