NASHVILLE, Tenn. (RFD-TV) — Natural disasters are a growing force behind food-price pressure and tighter farm margins — and drought is the biggest culprit, according to a new Trace One study by Federico Fontanella.
Using FEMA and USDA data, researchers estimate average annual U.S. agricultural losses of $3.48 billion, with drought accounting for $1.9 billion — more than half.
On the other hand, Hurricanes contribute about $485 million a year, flooding accounts for $437 million, and cold waves add $286 million. Hail, wind, heat waves, tornadoes, winter weather, and wildfires contribute hundreds of millions more in ag losses.
Drought-Related Ag Losses Uneven Across Regions
California leads with ~$1.3 billion in expected annual farm losses — and the highest per-farm hit (~$20,528) — reflecting the vulnerability of high-value fruits, nuts, and vegetables to water scarcity. Next are Texas (~$205 million), then Iowa, North Carolina, and Florida. At the county level, Santa Barbara, CA tops the list at ~$245 million a year, with Yolo, Napa, Sutter, and Colusa also high. Nationally, the average per-farm loss is $1,851.
Recent shocks show how hazards translate to costs — April 2025 flooding in eastern Arkansas damaged ~$99 million in crops, while Hurricane Helene (2024) prompted $221.2 million in USDA disaster block grants for North Carolina.
Farm-Level Takeaway: Prioritize drought resilience — water, insurance, and crop mix — and use local hazard maps to target investments in infrastructure, coverage, and diversification.
Tony St. James, RFD-TV Markets Expert
Farm CPA Paul Neiffer joined us on Friday’s
Market Day Report to break down what this extension means for affected ranchers.
September 26, 2025 02:03 PM
·
Lower inventories and cautious farrowing plans suggest tighter hog supplies into 2026, keeping producer margins sensitive to demand trends and health risks.
September 26, 2025 11:28 AM
·
Transportation challenges are mounting as droughts lower Mississippi River levels and push freight rates higher.
September 25, 2025 04:54 PM
·
Midwest corn and soy producers are monitoring for disease and lower yields due to the ongoing drought over the last 30 days.
September 24, 2025 04:38 PM
·
A new study by the National Grains and Feeds Association found that their industry generates $401.7 billion in economic output and supports over 1.16 million jobs nationwide.
September 24, 2025 02:41 PM
·
Herd rebuilding looks slow, keeping cattle prices supported; beef-on-dairy crosses help fill feedlots, while imports temper—but don’t erase—tightness.
September 23, 2025 01:32 PM
·
According to the most recent version of the Household Food Security Report for 2022-2023, food insecurity is on the rise in the U.S.
September 22, 2025 01:49 PM
·
Fewer cattle on feed suggest smaller slaughter numbers this winter, which could support strong prices if beef demand holds firm.
September 22, 2025 11:10 AM
·
Dairy farmers are expected to face strong output and export gains, but lower prices and tighter margins will persist into next year.
September 22, 2025 10:52 AM
·
