FarmPolicy

February 22, 2020

Global Economy Impacts U.S. Agriculture, Farm Bill, Rural America, and the New Congress

Global Economy Impacts U.S. Agriculture

Andrew Martin, writing in last week’s New York Times, reported that, “The long economic boom, fueled by easy credit that allowed people to spend money they did not have, led to a huge oversupply of cars, houses and shopping malls, as recent months have made clear. Now, add one more item to the list: an oversupply of cows.

“And it turns out that shutting down the milk supply is not as easy as closing an automobile assembly line.

“As a breakneck expansion in the global dairy industry turns to bust, Roger Van Groningen must deal with the consequences. In a warehouse that his company runs here, 8 to 20 trucks pull up every day to unload milk powder. Bags of the stuff — surplus that nobody will buy, at least not at a price the dairy industry regards as acceptable — are unloaded and stacked into towering rows that nearly fill the warehouse.”

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