Mad Cow Disease Confirmed in France; Lower Exports and Oversupply Plagues U.S. Agriculture
Market analysts say bans on French beef are likely following a confirmed case of bovine spongiform encephalopathy, otherwise known as BSE or mad cow disease. The World Organization for Animal Health raised the BSE risk assessment for France recently from the lowest risk level, which seems likely to force other countries to consider purchasing beef elsewhere. A market analysts says it is only a matter of time before some importers stop buying beef from the country, which will weigh on prices and hurt farmer revenues.
A new report by CoBank says oversupply and lower exports will continue to plague the U.S. agricultural industry for the remainder of 2016. The new Quarterly Rural Economic Review suggests those factors will result in a further, but modest decline in farm revenue for 2016. The increasing global inventory of commodities such as corn, along with lower exports, forced U.S. farm income to plummet by 25 percent last year to $93 billion.. CoBank says the strong dollar will continue to hamper U.S. exports and exert downward pressure on commodities prices.