Fall 2020

Northwest Farm Credit: Rural, Real Estate, Operating Loans; Farm Loans; Country Home Loans; Lot Loans; Equipment Financing; Young and Beginning Producers; Crop Insurance; Business Management Education; Property Appraisals

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fall 2020 4 When pandemic shutdowns began in March, consumers started spending more money at grocery stores than at food service locations for the first time in five years, according to U.S. Census Bureau data. Mandates to curb the spread of COVID-19 plummeted restaurant sales and may have changed consumer behavior forever. Below are excerpts from a special report published by Northwest FCS that provides insights into this recent shift in consumer behavior and the impact on agriculture. For a full copy of the special report visit northwestfcs.com/industryinsights. COVID-19 Food Buying Behaviors An Industry Insights Special Report industry insights • Retail food sales dropped 54.2% from January to April. Since the April low, restaurant recovery has been slow, and studies indicate a significant number of restaurants are closed for good. • Grocery store sales increased 28.6% from February to March as consumers switched from eating out to cooking (and learning how to cook) at home. • Before COVID-19 online grocery sales represented 10% to 15% of total grocery sales. In March and April online grocery sales reached 28% market share. Online wine sales increased 423.1% by the end of June, year over year. • 50% of consumers have returned to restaurants since restriction were lifted and 65% have ordered take out, according to Nielsen CGA. Of those who haven't returned, 67% say they won't unless a vaccine is available, or the threat of COVID-19 has passed. Another 16% aren't returning due to financial concerns. • On Oct. 1, the U.S. House of Representatives passed The Restaurant Act which, if passed in the U.S. Senate, would provide access to $120 billion in grants for the challenged industry. • According to the report, the impacts to agriculture vary. For example, high-end seafood sales are challenged while others, like frozen produce, are benefiting from the shift to grocery store buying. Jan 2019 July 2019 Jan 2020 July 2020 $75,000 $65,000 $55,000 $45,000 $35,000 $25,000 Food Service and Grocery Store Sales Source: U.S. Census Bureau Advance Monthly Sales; Food Service and Drinking Places and Grocery Stores Food Service Grocery Store Visit View this full report online

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