Texas received a huge blow to its food supplies during the pandemic. Among the sectors that were the most affected, it is possible to elicit weaned calves, stocker calves, feeder steers, sheep and goats, fruits and vegetables, and dairy products (Outlaw et al., 2020). These goods were sold in substantially lesser quantities than they were before the outbreak. There were plans to expand the growth of row crops to northern parts of Texas. However, due to the shortage of food, row crop growers could have lost a large sum of money if they sold their 2019 crops from storage (Outlaw et al., 2020). Although Texas farmers do not generally stockpile commodities this late in the marketing year, many were working through carryover supplies from the previous crop year to sustain the community.
There are several interesting points that could be distinguished from the effects of the pandemic. Consumers are shifting their shopping habits from restaurants to supermarkets. Prior to the pandemic, more than half of all food purchases were made outside of the home; this has changed (Outlaw et al., 2020). When shopping for meat and milk in supermarkets vs restaurants, people purchase different quantities, cuts, and types of meat and milk. The majority of the interruption is due to retailers ordering more meat and dairy than they had previously ordered (Outlaw et al., 2020). Supply chain, packaging, and other logistical challenges are inextricably linked to these changes (Outlaw et al., 2020). Simultaneously, food service purchases have plummeted, resulting in the cancellation of current and prospective orders.
In addition, the situation with the sector of broilers in which Texas remains the 6th largest producer was noticeable. Texas egg lays are down 14% from a year ago for the week of April 15, 2020, while broiler grow-out chicks are down 9% (Outlaw et al., 2020). The dairy business is the only part of animal production that is supported by agricultural programs. The 2018 Farm Bill included a Dairy Margin Coverage (DMC) scheme that allowed farmers to purchase insurance-like margin protection (Outlaw et al., 2020). According to the most recent USDA data, around 66 percent of Texas dairies are registered in DMC, accounting for roughly 84 percent of the state’s production (Outlaw et al., 2020). The majority of this enrolment will very certainly be at the lowest level of coverage, implying that assistance payments will only begin at dangerously low margins.
Reference
Outlaw, J. L., Fischer, B. L., Anderson, D. P., Klose, S. L., Ribera, L. A., Raulston, J. M., & Ernstes, D. P. (2020). COVID-19 Impact on Texas Production Agriculture. Agricultural and Food Policy Center Texas A&M University, (979).