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Economic Impact of COVID-19 on Michigan Agricultural Production Sectors

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  • Miller, Steven R.
  • Malone, Trey
  • Schaefer, Aleks K.

Abstract

The COVID-19 pandemic caused dramatic shifts in the agricultural economy. This article estimates the economic impact of the pandemic on Michigan agricultural production. Our conceptual model focuses on differences in five aggregated agri-food supply chains: row crops, livestock, tree fruits, vegetables, and dairy. Assuming the COVID-19 economic impact is driven by commodity price changes and changes in the relative prices and volumes of food away from home and food at home, we estimate a model of costs to the Michigan economy. Our findings indicate that the pandemic decreased the overall economic output attributable to Michigan agriculture by 18.6%, with dairy and vegetable production being the hardest hit, experiencing 25.2% and 27.2% reductions in economic output, respectively. Results from our input-output analysis suggest that the Michigan economy experienced a decline of $2,186,268,000 of primary and secondary sales due to pandemic effects on agricultural producers.

Suggested Citation

  • Miller, Steven R. & Malone, Trey & Schaefer, Aleks K., 2020. "Economic Impact of COVID-19 on Michigan Agricultural Production Sectors," Miscellaneous Publications 305642, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midamp:305642
    DOI: 10.22004/ag.econ.305642
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    References listed on IDEAS

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    1. Maik Kecinski & Kent D. Messer & Brandon R. McFadden & Trey Malone, 2020. "Environmental and Regulatory Concerns During the COVID-19 Pandemic: Results from the Pandemic Food and Stigma Survey," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(4), pages 1139-1148, August.
    2. John Baffes, 1991. "Some Further Evidence on the Law of One Price: The Law of One Price Still Holds," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1264-1273.
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    Cited by:

    1. Malone, Trey & Monahan, Jim & Nicpon, Katie & Schaefer, K. Aleks & Cary, Madelyn, 2022. "On the Strategic Creation of Extension and Outreach Content in a New Media Environment," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 4(2), July.
    2. Roengchai Tansuchat & Suparak Suriyankietkaew & Phallapa Petison & Khanyapuss Punjaisri & Suthep Nimsai, 2022. "Impacts of COVID-19 on Sustainable Agriculture Value Chain Development in Thailand and ASEAN," Sustainability, MDPI, vol. 14(20), pages 1-29, October.

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    Keywords

    Agricultural and Food Policy;

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