Indicators of the ag. economy in the time of coronavirus, an update.
We have all heard about how coronavirus mitigation measures drastically disrupted milk marketing on the East Coast. A few weeks ago, I noted here the precipitous decline in milk truck movement by my farm which was understandable because much of the milk produced here is destined for the fluid milk market in Boston & metropolitan New York.
You may be interested to note that when New York State authorized the purchase of $300 million worth of milk to be sent to food banks, the milk trucks started to roll again and are now running at a pretty good clip. I actually have to be a little more careful when I drive a farm tractor out on the road again not to get run over by a milk truck.
The fact is, given that the previous economic expansion of middle America had been driven largely by the economies of the East & West Coasts, it's obvious that until the East Coast economy recovers, the Ag. the economy in the Mid-West is going nowhere. That's especially true now that the Ag export economy has been systematically destroyed by the trade wars.
In short, you can open up the Mid-West all you want but you ain't going nowhere until the rest of the country can open as well. Remember, Padd 1 accounts for almost as much ethanol as Padd 2