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

28.11.2022 1015 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

09.08.2026

Canada - Prairie producers filed more than 4,000 crop insurance claims in stormy July

A stormy July in the Prairie provinces led to insurance claims being filed on more than one million acres of land, according to the Canadian Crop Hail Association (CCHA).

09.08.2026

Government announces free EC$1.5 million crop insurance for Dominican farmers

Farmers in Dominica will receive government-funded crop insurance under a new EC$1.5 million facility aimed at shielding agricultural livelihoods from hurricanes and other climate-related disasters.

09.08.2026

India - Livestock Insurance Scheme Introduced in Maharashtra; Farmers to Get 85% Premium Subsidy

Insurance cover for livestock deaths caused by accidents, natural disasters and diseases; up to 10 animals per family eligible.

09.08.2026

France - Bordeaux's smoke-taint risk: why this summer's wildfires could turn into a slow-burn claim

The vines in Bordeaux mostly survived July's fires untouched. Whether the grapes on them are still worth anything is a different question.

09.08.2026

India - J&K farmers receive Rs 119.67 Cr under crop insurance scheme; Rs 10.15 Cr claims still pending

Farmers in Jammu and Kashmir have received Rs 119.67 crore in crop insurance claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY) between 2022-23 and 2025-26, while claims worth Rs 10.15 crore remained pending as of July 24, 2026, according to data furnished by the Union Ministry of  Agriculture and Farmers Welfare in the Rajya Sabha.

09.08.2026

USA - Livestock Insurance Helps Producers Protect High-Value Herds from Catastrophic Losses

As cattle values continue to climb, livestock insurance is becoming an increasingly important risk management tool for producers of all sizes. 

05.08.2026

Canada - Crop development on track in southeast despite weather, gophers

The Saskatchewan Ministry of Agriculture says the recent heatwave has led to the rapid development of crops, according to the latest weekly crop report. The heat also contributed to haying progress.

05.08.2026

Spain - The Government launches aid to boost agricultural insurance against climate risks

The Generalitat reinforces the Agricultural Insurance Plan 2026 with almost 29 million and greater subsidies to lower the premiums against climate risks.