The coronavirus pandemic is far from over and while we hope that the worst-case scenario has passed, the world is still reeling from its debilitating effects. There are a lot of people who had their livelihoods taken from them, leaving them at the mercy of the government. Some of the most adversely affected people are the farmers and the ranchers, who suddenly found themselves with a surplus of produce and no buyers to take it off their hands. While the supermarkets were struggling to maintain supplies, farmers had to dump the products which could not be transported due to the supply chains being disrupted. The pandemic has lead to many farmers declaring bankruptcy all across the country as food demand and prices dropped. With so many people reeling from the financial repercussions of the virus, the easiest way to help them back on their feet is through financial support. Here are 5 reasons why farmers require agriculture financial services.
1. Effect on GDP
Agriculture and food contribute significantly to the American GDP with individual farms also making a sizeable part of it. About 5.4% of the total GDP or about $1.053 trillion is attributed to agriculture and food. It is imperative to support this industry through easily accessible financial services for the farmers. Agricultural lending can be the key to overcoming this crisis.
2. Animal Husbandry
Another related industry that has suffered majorly because of the ongoing crisis. A lot of farmers could not afford to feed their animals who perished as a result while the ones ready to be taken to the market could not be transported. This, coupled with decreasing demand for food as restaurants and hotels shut down, caused huge losses for the owners.
3. Market Conditions
The fluctuating prices and uncertain supply and demand has led to the market becoming very precariously balanced. This leads to several problems related to market stability. A common example would be the price of milk and other daily products that plummeted initially and then later soared. A constant supply chain ensures that the prices do not fluctuate by a large margin.
4. Harvest and Trade
A timely harvest is an indicator that the prices won’t surge and the supply would be uniform. The pandemic, however, also made labor scarce since immigrant workers could not travel to and fro from their countries. The lack of workers also led to farmers suffering losses that affect the trade process since food grains are especially in demand during this global pandemic.
5. Food Security
This is perhaps the most important reason why farmers require agriculture financial service; in times of national and global crises, ensuring that food productivity remains stable is the first and foremost job of the administration. The only way to ensure this is by providing a backup for farmers through subsidized lending and support.
Farming is the backbone of any nation. Civilization is a result of agriculture and when agriculture is threatened, it becomes important to protect it through sustainable means. Please visit here for more details: https://unitedfarmmortgage.com/farm-loans