Coronavirus pandemic takes huge toll on farmers

RANDOLPH — The coronavirus has put significant financial challenges on farmers in Cedar County and across the midwest.

Large meatpacking plants that process pork and beef have slowed down or closed due to the coronavirus. The virus can spread among meatpacking workers who often work in close proximity of one another.

A growing number of shutdowns is hurting the nation’s meat supply in a way that is reaching throughout the U.S. economy. Closure of these facilities is having severe repercussions on livestock farmers, who have no place to send their animals.

Randolph area farmer Larry Janssen has first-hand experience with this problem.

Janssen calves out over 300-head of cows each year. He is part-owner in feed yards and in Sholes Piggery located southeast of Randolph.

“With packing plants closing there are no buyers,” Janssen said. “The hog market is so bad right now pigs and hogs are being euthanized.”

The problem doesn’t just involve farmers, it also affects family households. Consumers will see smaller quantities of pork and beef products along with higher prices in the stores due to processing plant closures.

“This is not only hurting the farmers it will hurt the consumers. Meat counters will become empty,” Janssen said. “Our system is broke and it needs to be fixed. People should not have to pay $5.65 for a pound of hamburger. Our producers are going to be out of business if something doesn’t change.”

The coronavirus has also taken a huge toll on gasoline and ethanol demand.

Farmers are looking at another loss as a number of ethanol plants are shutting down. Siouxland Ethanol by Jackson announced it was shutting down in April, citing low demand for the corn-based additive.

Grain prices along with beef, pork and dairy are all down, according to Nate Gubbels, who farms in the Randolph area.

“Meatpacking plants are closing and a number of ethanol plants have shut down or are in an idling mode,” Gubbels said. “Distillers grain is a cheaper source of feed for the cattle.”

Gubbels is hoping the price for beef will see an increase by the first of the year. He will be selling his feeder calves in January. Gubbels, who farms in a partnership, experienced a different feeling when he was planting corn this year.

“Usually you are excited to get the planting done,” he said. “It is hard to get excited this year. The price farmers receive for the corn is 30 to 40 cents below the cost of production.”

Gubbels believes the coronavirus will continue to have an effect on farmers for a number of years.

“Farmers will feel this for a decade or more,” he said.

Dave McGregor, who farms northeast of Hartington, has concerns on what has to happen to turn things around.

“The corn price is bad. The fall price does not look good. It is under the cost of production,” McGregor said. “There could be a volume of corn but still no profit.”

Having ethanol plants, which produce corn-based fuel, shut down puts additional strain on farmers.

“Ethanol is 30 percent of the corn market,” McGregor said. “We have been relying on it but crude oil is driving the bus now.”

McGregor has a small beef operation. Cattle, which he raises, are sold in the fall when they are fat.

There are lots of questions with very few answers on what will happen with ethanol plants and meatpacking plants closing. According to McGregor, farmers will continue to plant corn and cattle will have calves. People will still need food.

McGregor has a few questions: “Farmers will have the product but will there be a shortage of processing? There will be plenty of beef and pork but will it be available on shelves in the stores?”

“This is a scary time,” McGregor said.