Courtesy of NAA:
Virginia Tech and The Ohio State University have released the results of their 2nd Quarter Survey reporting pandemic direct and indirect economic effects. The research team reported U.S. aquaculture, aquaponics, and allied businesses are still experiencing negative impacts from the coronavirus (COVID-19) disease pandemic. The analysis can be read or downloaded by clicking here.
Although the total number of respondents for the Q2 survey was lower, many of the responses indicate a similar trend as was observed in the Q1 results. While many Q2 respondents have been able to obtain external assistance and relief, there are still several impacts that will have longer term consequences. These include the continued disruption of traditional marketing channels, increasing costs of production, challenges obtaining services and inputs, challenges with cash on hand to cover operating expenses, and missed or delayed loan and bill payments.
Comments provided by respondents reveal that some producers have ceased all harvest activity or preparations for future production. Lost revenue continues to be a significant challenge for respondents, with 74% of Q2 respondents reporting lost sales. Challenges reported with labor and production, also reinforce Q1 results in suggesting negative impacts on future supply of aquaculture and aquaponics products. The key points from the Quarter 2 survey results are:
- 78% had been impacted by COVID-19 during Q2.
- 43% had had private orders/contracts cancelled.
- 27% had terminated employees.
- 74% had experienced lost sales.
- 9% had no cash available to cover operating expenses.
- 22% had less than 1 month of cash available to cover operating expenses.
- 45% would survive 3 months without external intervention.
- 48% applied for the Paycheck Protection Program, 33% for an Economic Injury Disaster Loan, 19% for a personal bank loan or line of credit, and 11% for unemployment benefits.
- 56% indicated that Federal assistance would help their farm or business to survive, and 33% indicated that state assistance would help their farm or business to survive.
For additional information or to ask your questions, please contact Jonathan van Senten at jonat86@vt.edu and Matt Smith at smith.11460@osu.edu.
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