Supply Chain Disruptions Affecting Farmers on Multiple Fronts

Nov. 1, 2021, 4 p.m. ·

Harvest machinery in field of corn
Supply Chain issues worldwide are affecting farmers in Nebraska and across the Midwest. (Photo Courtesy of Harvest Public Media)

Consumers are not the only ones being affected by current supply chain issues. The agriculture industry from farmers to food processors is also suffering from its effects. Major shortages from products needed to help farmers grow crops and fix equipment are sweeping the agriculture industry, especially in Nebraska. Due to the limited supply of products prices are also increasing.

Employees from major retailer John Deere recently went on strike for two weeks over demands for higher wages. This left farmers in the middle of harvest season finding it difficult to fix their machinery and continue production. Recently, workers reached a tentative agreement with the company, but plan to remain on strike until that is finalized.

“With the ongoing strikes that affected the production and distribution of parts, farmers are affected in terms of finding the inputs and equipment that they need to grow crops or harvest what they have been growing.” said Professor Erkut Sonmez, who teaches supply chain management at the University of Nebraska-Lincoln.

Due to shortages in the labor force, adds Sonzmez, millions of pounds of fresh produce are staying in the fields unable to be harvested which also adds to a higher labor rate and higher rates of food globally.

On the other hand, some industry plants are only equipped to handle one type of food product. For example, in the meat industry, there are two types of meat used. One is retail that includes smaller cuts of meat purchased at grocery stores. Secondly, there are HRI cuts that are used in hotel or restaurant settings. Because of fewer people going out to restaurants during the pandemic, there is less of a need for HRI cuts. And those plants are unable to shift into a different type of production.

It may be easy to blame the ongoing COVID-19 pandemic on the current shortages, however, these issues were already a problem before.

“A lot of these issues existed before COVID,” Sonmez said, “but now, these problems are becoming a lot more apparent and we are having to fight these problems harder.”

Another concern in the agricultural supply chain is the threat of natural disasters and climate change. Hurricanes hit the Gulf Coast where a majority of crop exports take and severe droughts affect the western side of the country reducing crop yields.

These issues will most likely not be going away anytime soon, but ongoing research aims to improve the current issues and prevent future disruptions.