'There's no shortage of food it's just getting it to the right places at the right time': Missouri Farm Bureau President

Missouri Farm Bureau President Blake Hurst joins Yahoo Finance’s On The Move to discuss how the coronavirus pandemic is affecting supply chains on a global scale.

Video Transcript

ADAM SHAPIRO: It does not matter how advanced technologically a society may be. You always need men and women who raised the food, produce the food, pick the food, ship the food to those of us who want to eat. Joining us right now is a friend of this program. He's been on before-- want to welcome Blake Hurst.

He is also at the Missouri Farm Bureau. He is the president. And Blake, it's good to have you here. The reason we invited you was to talk about the supply chain issues right now. Is it becoming more difficult for your farmers?

BLAKE HURST: Well, what you're seeing is a massive change in the way people consume food. We're not eating in our restaurants or eating at home. So the way that the food is prepared and its supply chain that it's part of to go to a restaurant is different than it is to go to your grocery store. So we've certainly seen some struggles with that transition.

JULIE HYMAN: And so what does that transition, then, [? feed ?] like? Hey, it's Julie here. How is that translated for you? Is there more demand for what you're producing? Is there less? How's it work?

BLAKE HURST: We've seen some real weakness in the markets for Missouri farmers. My corn market has gone down. There's some non-COVID-related things that have caused that. We've seen a huge increase in planning expectations for whatever reasons. So cattle markets have just collapsed. 25% drop in cattle prices, in fact, cattle prices. And I'm not totally sure why that has happened.

But there is a lot of meat in cold storage. And that's being reflected in the market. So it has weakened-- weakened prices that we receive. And, of course, when you go to the elevator, it's a little bit different procedure than it used to be. But they're still open and still accepting our grain.

- Let me pick up on that point that Julie just made. I mean, you talk about where you've seen the declines as a result of the shift that we've seen in the way food has been prepared. Where are you seeing the growth? I'm wondering how that dynamic has shifted. And how easy is it for farmers to be able to adjust to that demand that has shifted up so quickly?

BLAKE HURST: Well, I think it depends, of course, on what you're growing. If you're a fresh produce that maybe went into the restaurant market, then you may have to package it Different you may have to harvest it a different time because it takes a little bit longer or a little bit shorter period of time before it gets to grocery store.

Just in the commodity markets-- corn, soybeans, wheat, that sort of thing-- I don't think farmers have seen much change in how they react except for the drop in prices. And so then it becomes a question of whether you hold out for better prices or whether cash flow means that you still have to sell something even at these depressed prices. But there's no shortage of food. It's just a question of getting it to the right places at the right time.

ADAM SHAPIRO: Blake, you know, one of the reasons we've become a friend of yours and, likewise, is we would have discussions with you about tariffs and what was going on and how they were impacting farmers. We heard from Larry Kudlow earlier that there's not going to be any rescinding of tariffs. We had the trade deal where the Chinese were going to be buying some products. What happened there? Are you hearing anything that would offer relief? For instance, you mentioned corn for exports of that to, perhaps, other countries?

BLAKE HURST: Well, I saw just across the wire this morning was a sale to China. So we are seeing some activity on the China market. But obviously they've got large troubles of their own. And, you know, I'm not sure that what they call phase one of the trade agreement is going to be totally fulfilled. It's been confusing, because the marketing year for ag commodities starts in October.

So the marketing year is different in the calendar year. And so it's been confusing to even know what year they promise to increase their consumption. So that's been one of the challenges. So far we haven't seen a huge increase in demand from phase one. But we're still hopeful.

JULIE HYMAN: Blake, I wanted to ask you about farm workers and organizing. We've seen some reports out of Florida, for example, that some of the unionized workers there are raising concerns about working conditions right now amidst this pandemic. What are you seeing there in Missouri? And are you having any problem finding folks to work right now?

BLAKE HURST: Actually, we have a greenhouse business and use some local folks that work for us. We're doing all the things that everybody else is doing. We're staggering their hours. We're having them work in different locations on the farm so they're not interacting. Obviously there's concern about H2A, getting enough workers that would typically be coming into the US, as harvest of fresh produce opens up this summer.

So all those things are a concern. And it's-- you know, it's just difficult. Social distancing for those of us that drive tractors is pretty easy. A little bit different if you've got a crew picking tomatoes or lettuce. So it's going to be a challenge, I think, for everybody in the food system.

ADAM SHAPIRO: Blake Hurst, it's always good to see you. Thank you for being here on Yahoo Finance. And just a reminder for everybody that Blake is the president of the Missouri Farm Bureau. All the best to you and your people, Blake.

BLAKE HURST: Thank you.