The report titled Farm product prices, August 2020 was released this month showing the prices of product bought by Ontario farmers.
This includes products like grains, cattle, hogs, oilseed, crops, eggs, and dairy products.
The main that the report shows was that Ontario farmers profits have started to rebound after the lowered prices of the first half of this year.
This means that due to the coronavirus and the high demand of products, farmers had to sell at a loss due to lowering the prices for their product to sell in supermarkets.
While most of these products have been affected by COVID-19, things like eggs have barely seen a difference in price.
Grains and oilseeds prices have improved from the lower prices reported in the first half of the year due to a lowering of production estimates for the 2020 crop year in the United States.
Despite improved prices, however, cost pressures such as labour, electricity, etc. continue to put pressure on many farms.
Cattle prices have been improving since mid May from the lower prices reported in the first few months of 2020 because of lower slaughter levels resulting from COVID-19 challenges at meat packing facilities and lower expected beef supplies in North America.
In general, hog prices have been lower than the last few years primarily due to the increase in hog slaughter and pork production in the United States.
Current hog prices have been trending up since July, mainly due to strong demand and lower production.
This is the result of weak capacity utilization rates in spring and summer pork processing capacity in the United States due to COVID-19.
But how much of a difference did COVID-19 make in farm product prices compared to last year’s August report?