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

28.11.2022 937 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

07.07.2026

Ukraine - Cold spring delayed soybean development and increased harvest loss risk

The cold spring and low temperatures at the beginning of sowing had a negative impact on the development of soybeans in Ukraine. 

07.07.2026

Severe storms drench China, leading to deaths and crop damage

China’s central and southern regions have been lashed by heavy rain that’s led to deaths and crop damage, with more extreme weather expected later this week from a strong typhoon heading toward the country’s east.

07.07.2026

Severe storms flooded roads and battered vineyards in northeastern Italy

Large hail and strong winds hit towns in Veneto and Friuli, raising fears of crop damage in a key wine-growing region.

07.07.2026

Australia - Bird flu compensation leaves business interruption insurance gap

The spread of H5 bird flu to a third Australian state has focused industry attention on a structural feature of the country’s animal-disease risk model that matters to underwriters and brokers: government compensation for avian influenza reimburses culled birds but excludes the business-interruption losses that often exceed them, leaving a coverage gap that the private market fills only partially and, brokers say, on tightening terms.

07.07.2026

Livestock insurance offers hope to drought-hit Somalia pastoralists

A record drought wiped out nearly half of Iido Abdikarin Abdille's herd in northern Somalia, but a livestock insurance programme is helping to ease the financial burden on pastoralists like her.

07.07.2026

Spain - The Board will sign an agreement with Enesa to share data in the management and control of aid for agricultural insurance

The Governing Council of the Junta de Extremadura has given the green light to the subscription of an administrative cooperation agreement between the regional administration and the State Agricultural Insurance Entity (Enesa), with the aim of facilitating the exchange of information for the management and supervision of subsidies for agricultural insurance contracts.

06.07.2026

Canada - Prairie Storms Expected to Generate Significant Crop Hail Claims

Golf-ball-sized hail reported in parts of Saskatchewan and Manitoba.

06.07.2026

Bangladesh - Flood forecasting technology key to reducing crop losses: IEB president

Engineers and academics on Monday stressed the need for technology-driven flood forecasting and early warning systems to strengthen Bangladesh's resilience against floods and minimise damage to lives, livelihoods and agriculture.