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Agrifood markets and support in the United States after 1 year of COVID‐19 pandemic

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  • David Orden

Abstract

This article briefly outlines the agrifood market and policy situation in the United States after 1 year of the COVID‐19 pandemic. Agrifood markets suffered initial disruptions from both supply‐side and demand‐side shocks but significant adjustments by farmers, processors, distributors, and government kept these relatively shorty‐lived. Substantial support has been provided to farmers as part of $5 trillion of economy‐wide stimulus enacted. This included payments in 2020 under the Coronavirus Food Assistance Program (CFAP) of nearly $24 billion to producers of a wide array of products. These payments came on top of trade‐related support provided to agriculture in 2018 and 2019. The stimulus also included expansion of nutrition assistance programs for low‐income households which were among the hardest hit by the pandemic. I conjecture that the pandemic will influence planning and social policy across the US economy for years to come but will not shift the basic structure of US agricultural production and distribution. Counter‐cyclical farm policy is reentrenched within the political arena and expectations for support levels may have been raised. Cet article discute brièvement le marché et la situation des politiques agroalimentaires aux États‐Unis après un an de pandémie de la COVID‐19. Les marchés agroalimentaires ont subi des perturbations initiales dues à des chocs à la fois du côté de l'offre et de la demande, mais des ajustements importants de la part des agriculteurs, des transformateurs, des distributeurs et du gouvernement ont maintenu ces derniers relativement de courte durée. Un soutien substantiel a été fourni aux agriculteurs dans le cadre de mesures de relance de l’économie de l'ordre de 5000 milliards de dollars. Cela comprenait des paiements en 2020 au titre du programme d'aide alimentaire contre le coronavirus (PAAC) de près de 24 milliards de dollars aux producteurs d'un large éventail de produits. Ces paiements sont venus s'ajouter au soutien lié au commerce fourni à l'agriculture en 2018 et 2019. Le stimulus comprenait également l'expansion des programmes d'assistance nutritionnelle pour les ménages à faible revenu, qui étaient parmi les plus durement touchés par la pandémie. Je suppose que la pandémie influencera la planification et la politique sociale dans l'ensemble de l'économie américaine pour les années à venir, mais ne modifiera pas la structure de base de la production et de la distribution agricoles aux États‐Unis. La politique agricole anticyclique est de nouveau enracinée dans l'arène politique et les attentes concernant les niveaux de soutien peuvent avoir été augmentées.

Suggested Citation

  • David Orden, 2021. "Agrifood markets and support in the United States after 1 year of COVID‐19 pandemic," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(2), pages 243-249, June.
    • Handle: RePEc:bla:canjag:v:69:y:2021:i:2:p:243-249
    DOI: 10.1111/cjag.12278
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    1. Weersink, Alfons & von Massow, Mike & Bannon, Nicholas & Ifft, Jennifer & Maples, Josh & McEwan, Ken & McKendree, Melissa G.S. & Nicholson, Charles & Novakovic, Andrew & Rangarajan, Anusuya & Richards, 2021. "COVID-19 and the agri-food system in the United States and Canada," Agricultural Systems, Elsevier, vol. 188(C).
    2. Alan P. Ker & Ryan Cardwell, 2020. "Introduction to the special issue on COVID‐19 and the Canadian agriculture and food sectors: Thoughts from the pandemic onset," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(2), pages 139-142, June.
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    1. Elvira Kuandykova & Bakhitzhan Kuandykov & Sabit Daubassov & Gulmyra Kalieva & Bakitzhan Zhaxsymbet, 2023. "Public administration in agricultural development and well-being of foreign countries," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(1 suppl.), pages 199-215.

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