By Jamie Martin
A winter storm that swept through Arkansas in late January inflicted major losses on the state’s poultry industry, with damages estimated at around $200 million. The findings come from a preliminary analysis released by the University of Arkansas System Division of Agriculture.
The study, issued on March 3, was authored by agricultural economists Frank Seo, James Mitchell and Ryan Loy. Their report evaluated the effects of the winter storm, which brought heavy snowfall of up to 12 inches and nearly 2 inches of sleet to parts of the state.
The severe weather caused widespread destruction to poultry houses and farm facilities. Information gathered from eight poultry integrators showed bird mortality losses totaling about $12.08 million. Damage to poultry houses and other structures was estimated to range between $172.33 million and $202.06 million.
Survey data compiled by the Cooperative Extension Service revealed that 241 poultry houses were destroyed during the storm, while another 91 suffered varying levels of damage.
Economic impacts extended beyond physical losses. The report estimated that farmers lost approximately $26.83 million in income due to bird deaths and halted production. A one-year production disruption could also reduce economic output by $21.74 million, including roughly $5.83 million in value added for farmers, workers, businesses and government.
Altogether, the reduced poultry production capacity is projected to lower statewide economic activity by $48.26 million and result in about 44 fewer full-time-equivalent jobs.
“The biggest statewide hit is lost household income, especially grower pay and related wages, because that is what ripples into local spending,” Seo said.
The combined effects of mortality and reduced production are also expected to lead to about $3.83 million in lost tax revenue.
Despite these setbacks, reconstruction and repairs could stimulate between $292.92 million and $343.45 million in economic activity.
“Commercial poultry production depends on continuous power and environmental control systems, including heating, ventilation and automated feeding,” Seo said.
“The prolonged cold temperatures, snow and ice loads, and widespread power outages associated with the winter storm demonstrate how quickly infrastructure failures can cascade into production losses, reduced household income, job impacts and broader economic effects across the state economy.”
Photo Credit: bobby-powell
Categories: National