USA - California farms face $3 billion loss from historic drought

28.11.2022 984 views

California’s worst drought has left growers in the top US agricultural state facing losses of $3 billion, just as producers brace for more widespread cuts to water supplies.

The state’s driest three-year period on record resulted in the crop revenue losses after growers left a total of 1.3 million acres unplanted over 2021 and 2022 as compared with 2019, according to a study commissioned by the California Department of Food and Agriculture. That’s the most idled acreage in recent memory, with effects cascading down the food industry.

California’s Central Valley -- which grows about a quarter of all US food, including 40% of fruits and nuts -- is bearing the brunt of the losses so far. Things could still get worse, with the state’s southern farming areas reliant on water from a shrinking Colorado River likely to see more fallowing in 2023, said Josue Medellin-Azuara, a University of California Merced professor who led the analysis.

“Strategic short term land idling was the most common cropping decision adaptation in this drought,” researchers said in the report. “Some crops such as rice, and other field and grain crops showed extensive idling,” while beef and milk productions were “lower than they would have been.”

The estimated 752,000 acres of fallowed fields in 2022 alone represent nearly 10% of California’s irrigated land examined by researchers. Growers also faced extra energy costs due to the need to pump water. The study is based on “water” years that run from October through September. 

California’s so-called senior water rights over other states have helped shield farmers who depend on the Colorado River from severe water cuts. 

But with the basin that provides water for 40 million people from Denver to Los Angeles contending with a megadrought, states are being tasked by the US government to figure out a plan to conserve water. Federal officials also are considering action that would allow them to mandate restrictions. 

“The pressure is on for cutbacks,” Medellin-Azuara said in a telephone interview. Looming water restrictions for farming in Southern California and Arizona are especially of concern because those regions grow lettuce and other vegetables heavily relied by the rest of the country during winter months.

At least 70% of irrigated land in the Colorado River Basin is used to grow feed for livestock, and the drought already is boosting prices for such crops, according to the study.

The report’s findings weren’t all grim. Statewide economic impacts on farm income were “softened considerably” by measures such as increased groundwater pumping, switching crops, water trading and insurance payments. 

Source - https://www.ajot.com

26.07.2026

Zimbabwe cattle and health cover for farmers

As climate change exposes Zimbabwe’s smallholder farmers to increasingly frequent droughts and extreme weather, the Insurance Council of Zimbabwe (ICZ) will broaden agricultural insurance beyond crops to include livestock, health, and funeral cover to lessen the financial impact of climate-related disasters.

26.07.2026

U.S. Farm Aid Could Hit $55.4 Billion as Debate Grows Over Long-Term Subsidy Dependence

A proposed $11.1 billion aid package reignites concerns that temporary farm relief may become a permanent pillar of U.S. agriculture.

26.07.2026

India - Bengal govt to bear farmers’ premium share under PMFBY

The Bengal government has set the ball rolling for implementing the Pradhan Mantri Fasal Bima Yojana (PMFBY), deciding to bear even the farmers’ share of the insurance premium. 

26.07.2026

Spain - Cherry insurance plummets 63% in Alicante in five years

Cherry insurance contracts have fallen 63,46% in the province of Alicante between 2021 and 2026, according to the data analyzed by ASAJA Alicante.

26.07.2026

Crawford warns super El Niño threatens UK crop yields

Crops enter risky season as El Niño intensity forecasts climb.

26.07.2026

India - Collector G Raja Kumari sets July 31 deadline for crop insurance enrollment

Collector G Raja Kumari directs agriculture officials during a Zoom review meeting to take proactive measures against anticipated El Niño and drought conditions.

23.07.2026

USA - Michigan Crop Insurance Pilot Tests Whether Soil Health Can Lower Risk

Michigan Crop Insurance Pilot Tests Whether Soil Health Can Lower Risk.

23.07.2026

Greece - Severe Storms Cause Widespread Crop Damage in Evros

Severe storms and hail battered crops in Evros, damaging thousands of acres of cotton, corn, vegetables and walnut orchards, with losses now being assessed.