COVID-19 Impact on Central Illinois Agriculture

April 7, 2020

Unprecedented times that are marked with uncertainty have the potential to lead to us to fear the worst across all fronts. But, I’d like to offer a brief word of encouragement to readers who own and/or farm land in this region. As it relates to Central Illinois agriculture, COVID-19 will likely impact less significantly the crops we grow and harvest here than it will crops grown in other parts of the country and world. Corn and soybeans should be better sheltered from some of the economic impact of this pandemic.

We’ve had several wet weeks recently, but assuming the rainfall starts to slow, crops should be able to get in the ground approximately according to a normal year’s schedule. Let’s cross our fingers on the weather so we don’t have a repeat of 2019 planting! Farmers will likely run into some unique challenges or slowed response time when interacting with other ag-businesses due to social distancing interrupting the normal flow of operations. Thankfully, though, agriculture has rightly been deemed an “essential service” so, hiccups aside, those businesses are allowed to continue to function.

As Luke shared in a letter to our farm management clients and operators in mid-March, we are seeking counsel and wisdom from additional grain marketing experts this cropping season to help navigate this uncharted territory and ensure we do the best job we can on behalf of our clients. Profitability of this year’s crop has the potential to be impacted, though to what extent remains unknown at this time. Depending on how long this goes on, exports could be impacted and demand could lessen.  The drastic drop in oil prices impacts the corn market as the demand for ethanol lessens.  As always, we will stay in close communication with our clients throughout the year to let you know if significant income changes are to be expected.

Let’s all keep putting one foot in front of the other, and praying for the health of our nation – physically, spiritually and economically. Luke’s wife, Allison, got me this coffee mug a couple years ago as a visual reminder to not be an “Eeyore” but instead to keep a positive attitude about markets (she knows me well and how my mood can tend to ebb and flow with the market). I’d encourage us all to keep our chins up, to look for the good in this situation even though the bad is screaming so loudly at us.

Written by Allan Worrell – State Certified General Real Estate Appraiser, Accredited Land Consultant, Accredited Farm Manager