[Listen] Economic Impact of Dairy and Hog Industry and COVID-19
The University of Minnesota Extension Service just released the results of a study on the economic impact of the dairy and hog industry in Minnesota and COVID-19. The study was done by Researchers Brigid Turk, Extension senior economic impact analyst, Extension economist Joleen Hadrich and Extension Educator Megan Roberts. First the good news.
The average hog farm in Minnesota generates $1.5 million in economic activity. The economic activity of the averaged dairy farm in Minnesota is similar at $1.6 million. Minnesota pork producers sold 22.3 million hogs in 2019 with a value of $2.7 billion. The average farm spent $891,840 o raise the animals, paid $33,000 in state and local taxes and contributed $203, 020 in direct labor income to Minnesota.
COVID-19 had a devastating economic impact on dairy and pork producers. Hog prices dropped from 50 cents a pound to 37 cents a pound. Plus, because some hog processing plants shut down or decreased capacity some hogs had no value and had to be euthanized. Dairy farmers did not due much better as milk prices dropped over 40 percent.
Even though pork processing plants are back on line that economic shock will be felt in local economies for quite some time. If you would like more details click on the links and listen to Megan Roberts on Tuesday's AM Minnesota Program along with Rice and Steele County Extension Educator Claire LaCanne Thanks to Claire for helping organize the AM Minnesota Program.