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

28.11.2022 934 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

05.07.2026

USA - USDA Unveils $500 Million SPUR Program to Protect Independent Beef Processors Amid Historic Cattle Shortage

Seeking to stabilize a meat supply chain stressed by historic shortages and high prices, the U.S. Department of Agriculture announced a new $500 million initiative aimed at protecting independent, mid-sized beef processors from being squeezed out of the market by dominant conglomerates.

05.07.2026

India - Cuddalore Collector urges farmers to pay premium for crop insurance

The Cuddalore district administration has asked the farmers to pay premium for paddy crop under the Prime Minister’s Crop Insurance Scheme.

05.07.2026

Canada - Drainage maintenance in spotlight as $15M in crop insurance payouts expected this year — before recent flooding

Manitoba crop insurance payouts will likely exceed $15 million this year — before factoring in recent flooding in the Interlake and Parkland regions. Total costs won’t be fully known until year end.

05.07.2026

Spain - Extremadura and Agroseguro see reinforcing cherry insurance and its coverage as a priority

The Junta de Extremadura and Agroseguro have agreed that it is a priority to strengthen cherry insurance to optimize its coverage and better adjust it to the real needs of the producing sector.

05.07.2026

Philippines - PCIC urges growers to insure hogs before ASF hits Antique

The Philippine Crop Insurance Corporation (PCIC) has encouraged swine growers here to avail of free insurance even if Antique is still without African swine fever (ASF) cases.

05.07.2026

USA - Oregon governor requests federal disaster designation for pear crop losses

Governor Tina Kotek signed a letter Thursday to the U.S. Secretary of Agriculture requesting a disaster designation for pear growers in Hood River and Wasco counties, as well as contiguous counties affected by severe crop losses in 2025.

02.07.2026

India - Vijayanagara farmers await crop insurance claims

Lakhs of farmers across Vijayanagara district are staring at an uncertain future, with the Pradhan Mantri Fasal Bima Yojana (PMFBY) allegedly failing to provide compensation for crop losses suffered during the previous kharif and rabi seasons.

02.07.2026

USA - Summer Pests and Frost Impact Klamath Basin Crops

Over the last week, IREC staff have observed several pests in winter and spring grain crops.  Most wheat and barley fields at IREC have populations of cereal leaf beetle, aphids, and armyworms.