Estimated economic impacts of the 2019 Midwest floods
This analysis focuses on the economic activity impacts of 2019 prevented planting acreage across the Midwest and parts of the South compared to what occurs in a typical year. The results indicate a loss of an estimated $4.5 billion in economic activity and $2.8 billion in gross regional product that is especially concentrated in particular Midwest BEA regions. While the analysis ignores some of the other costs that farmer’s incur, including impacts on cover crops, crop rotations, forage management, manure storage, and farmers’ mental health, the insurance and disaster payments provided a financial safety net for producers.
Agricultural input manufacturers, wholesalers, and retailers do not have similar opportunities to insure against foregone sales and have received no disaster assistance payments. Normally, the large geographic footprint of many of these firms mitigates the impact of localized weather effects. However, given the widespread nature of the wet spring, these firms were negatively affected across Corn Belt and Mid-South representing a substantial production area. Regional economic impact of declines in sales by agricultural input providers due to wet weather-based prevented plantings on 13.1 million acres.
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