Friday, March 27, 2020
After providing nearly $26 billion in aid to farmers over the past few years to offset losses from President Trump's trade war with China, the administration now has another giant new pot of money to pass out to them with little or no oversight, courtesy of the $2 trillion coronavirus stimulus package. ... [U]nlike industries such as airlines, hotels and automakers, which have largely or completely shut down, most farms are still operating. And sales of some products in the industry have surged as worried consumers stock up, generating shortages of meat, chicken, eggs and flour.
In general, farmers have weathered recessions better than other economic groups, because while consumers cut purchases of goods like clothing and change their eating habits to save money, they always need food. This downturn is fundamentally different from others in many ways, but Wall Street analysts are issuing bullish predictions for parts of the agriculture industry based on the surge in demand for products like beef and chicken.
"Meat is flying off the shelves" wrote Ken Goldman, an analyst at Goldman Sachs, who upgraded the stocks of Tyson and Sanderson Farms, two major chicken and meat producers.
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