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USDA Secretary Sonny Perdue announced the Coronavirus Food Assistance Program, a $19 billion relief package. It includes $16 billion in direct payments to farmers and ranchers based on actual losses, plus purchases of agricultural products for distribution to people in need.
Direct payments can cushion producers' finances and keep herds and acreage in production, while government purchases of dairy, meat and produce support prices for those commodities during the demand disruption.
usda.govApr 17, 2020After 17 past bullish policy events, Milk (Class III) moved a median -0.6% over 5 sessions (29% higher; middle half -1.6% to +0.2%), and -3.0% over 20.
After 37 past bullish policy events, Lean Hogs moved a median +0.0% over 5 sessions (51% higher; middle half -2.8% to +0.9%), and +0.2% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
