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>> HELLO AND WELCOME TO INSIDE
INDIANA BUSINESS. I'M GERRY
DICK.
AGRINOVUS INDIANA IS OUT WITH A

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NEW STUDY WITH A STUNNING BOTTOM
LINE...SHOWING THAT AGGREGATE
LOSSES FROM THE PANDEMIC COST
INDIANA FOOD PRODUCERS AN

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ESTIMATED $500 MILLION, SENDING
SHOCK WAVES THROUGH A FOOD CHAIN
GOING THROUGH DISRUPTION AND
EVOLUTION AT THE SAME TIME.

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RESEARCHERS ANALYZED LOSSES IN
FIVE KEY AREAS: CORN, SOYBEANS,
HOGS, DAIRY AND EGGS.
WITH MORE ON THE NUMBERS AND WHY

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THEY COULD POINT TO
OPPORTUNITIES IN THE FUTURE, I'M
PLEASED TO BE JOINED BY THE
CO-AUTHOR OF THE RESEARCH, THE

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HEAD OF PURDUE UNIVERSITY'S
DEPARTMENT OF AGRICULTURAL
ECONOMICS JAYSON LUSK.
AND JAYSON, WELCOME TO THE

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PROGRAM.
>> THANKS, GERRY.
>> THE NUMBER, $500 MILLION, HOW
SUBSTANTIAL IS THAT?

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>> IT IS A SUBSTANTIAL NUMBER.
AND INDIANA'S AGRICULTURAL
PRODUCERS WERE HARD-HIT, A LOT
OF CONSTERNATION IN THE EARLY

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PART OF THE PANDEMIC. IT IS
IMPORTANT TO PUT IT IN THE
CONTEXT OF THE SECTORS, WHICH
ARE PROBABLY 7 OR $8 BILLION FOR

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THE STATE -- 500 IS A REAL LOSS.
BUT, YOU KNOW, IT'S ONE THAT I
THINK WE'LL BE ABLE TO WORK
THROUGH. WE'VE HAD A LITTLE MORE

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POSITIVE NEWS THIS FALL AND
SPRING THAT PUT PRODUCERS IN A
BETTER STATE. THERE WAS A LOT OF
PAIN AND SUFFERING AND CONCERN

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THIS SPRING AND SUMMER.
>> YEAH. TALK ABOUT THAT IN A
MOMENT. BUT IN PARTICULAR, SOME
OF THE AREAS I MENTIONED, CORN,

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BEANS, PORK, DAIRY AND EGGS, KEY
PRODUCT AREAS. IN PARTICULAR
YOUR RESEARCH FOUND THAT PORK
PRODUCERS, AND ALSO CORN, GRAIN

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FARMERS HIT PERHAPS ESPECIALLY
HARD.
>> NO DOUBT THAT'S TRUE. THERE
IS THE DOLLARS, BUT THEN THERE'S

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ALSO THE PAIN AND SUFFERING, IF
YOU WILL OF THE PEOPLE WHO HAD
TO LIVE THROUGH THOSE
EXPERIENCES, PARTICULARLY THE

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PORK SECTOR, WE HAD TO SHUT DOWN
THE PACKING PLANTS BECAUSE OF
WORKER ILLNESSES, FARMERS
WORRIED ABOUT WORSE CASE

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SCENARIOS THAT THEY NEVER WANTED
TO THINK ABOUT, EUTHANIZING
OGS, THAT KIND OF STRESS,
THINGS YOU DON'T SEE IN THE

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NUMBERS. BUT WERE CERTAINLY VERY
PRONOUNCED IN THE SECTOR.
>> YEAH, YOU MENTIONED THAT
COMMODITY PRICES COMING BACK.

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ALSO, GOVERNMENT ASSISTANCE,
PERHAPS THOSE FACTORS. WILL THAT
MITIGATE PRODUCERS GOING OUT OF
BUSINESS?

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WILL THAT HELP THE OVERALL
SITUATION?
>> IT WILL DEFINITELY HELP, THE
FEDERAL DISASTER PROGRAMS THAT

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HAVE PUMPED BILLIONS OF DOLLARS
INTO THE AGRICULTURAL SECTOR. SO
MUCH SO THAT OVERALL, 2020,
ACROSS THE ENTIRE UNITED STATES,

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USDA IS EXPECTING NET FARM
INCOME TO BE HIGHER THAN THE
LAST THREE, FOUR YEARS, MAINLY
DUE TO GOVERNMENT PAYMENTS. I

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THINK THAT'S HELPED PROVIDE A
FLOOR BELOW WHERE SOME OF THESE
LOSSES WOULD HAVE HIT OTHERWISE.
AND WE'VE HAD SOME IMPROVEMENT

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IN COMMODITY PRICES BECAUSE
CHINA'S PICKED UP SOME OF THEIR
BUYING OF AGRICULTURAL PRODUCTS
COMING OUT OF SOME OF THAT TRADE

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WAR.
>> JAYSON, I THINK IT'S
INTERESTING. TALK ABOUT THE
COMPLEXITY OF AGRICULTURAL TODAY

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AND HOW THINGS ARE SET UP.
INTERESTING STATISTIC IN THE
1960s, THE AVERAGE GROCERY STORE
OFFERED ABOUT 6,000 PRODUCTS.

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TODAY THAT NUMBER IS LIKELY MORE
THAN 33, 34,000 PRODUCTS, THE
SUPPLY CHAIN IS SO COMPLEX. HOW
DOES THAT FACTOR IN TO WHAT YOU

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LOOKED AT, AND REALLY THE IMPACT
HERE IN INDIANA AND BEYOND?
>> WELL, I THINK IF WE LEARNED
ANYTHING FROM THIS PANDEMIC IT'S

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THAT A LOT OF US DIDN'T KNOW
VERY MUCH ABOUT WHERE OUR FOOD
CAME FROM, AND FOR FOLKS LIKE ME
THAT SPEND TIME STUDYING THE

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FOOD SUPPLY CHAIN, IT IS MORE
COMPLICATED THAN I THOUGHT. FROM
THE FARM, TO THE PROCESSOR, TO
THE DISTRIBUTOR, TO THE GROCERY

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STORE, DIFFERENT FOR ALL THE
DIFFERENT PRODUCTS, INVOLVES
MULTIPLE -- SUPPLY CHAIN. GOES
TO SHOW THAT WE TAKE A LOT FOR

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GRANTED IN OUR FOOD SUPPLY
CHAIN. HOPEFULLY ONE OF THE
OUTCOMES IS WE REALIZE HOW MUCH
WE NEED TO THINK OF THE PEOPLE

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INVOLVED IN OUR FOOD SUPPLY
CHAIN, WHETHER IT IS THAT WORKER
IN THE GROCERY STORE, THE GUY
THAT DRIVES THE TRUCK, OR THE

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PERSON THAT FOOD PROCESSES IN
THE PLANT.
>> YOU TALK ABOUT THE NEGATIVE
IMPACT, OBVIOUSLY. YOU SEE THE

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POTENTIAL FOR OPPORTUNITY COMING
OUT OF THE PANDEMIC FOR
AGRICULTURE?
>> MAYBE THE COROLLARY, THERE IS

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AN OPPORTUNITY, ONE OF THE
RECOMMENDATIONS OF OUR REPORT
THAT WE DID WITH EY FOR
AGRINOVUS, THERE IS AN

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OPPORTUNITY TO GET TO KNOW THE
PEOPLE IN THE FOOD SUPPLY CHAIN
SO THAT WHEN WE HAVE CHALLENGES
LIKE THIS AGAIN WE KNOW WHO TO

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CALL, WE KNOW OUR OPPORTUNITIES,
AND MAYBE DO SOME OF THAT
EMERGENCY AND CONTINGENCY
PLANNING THAT WE WEREN'T QUITE

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PREPARED FOR THIS TIME AROUND.
>> ALL RIGHT. SOME VERY
INTERESTING RESULTS FROM A
BRAND-NEW REPORT FROM AGRINOVUS,

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INDIANA. THAT ORGANIZATION
ITSELF ONE OF THE REASONS WHY
THERE IS A BIT OF AN OPTIMISTIC
OUTLOOK IN AGRICULTURAL IN

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INDIANA. JAYSON LUSK, PROFESSION
AND HEAD OF THE DEPARTMENT OF AG
ECONOMICS AT PURDUE. ALWAYS