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
Higher menu prices and tax-free tips are reshaping restaurant economics, sharply lifting server take-home pay even as diners face higher out-the-door costs.
November 15, 2025 08:00 AM
·
USDA’s steady yields and heavy global stocks keep grains range-bound unless demand firms or South American weather becomes a real threat.
November 14, 2025 05:26 PM
·
As economic pressures continue to squeeze agriculture, ag lenders are signaling a more cautious outlook for farm profitability heading into next year, particularly among grain producers facing lower commodity prices and higher operating costs.
November 14, 2025 02:10 PM
·
USDA released the November WASDE Report on Friday, the first supply-and-demand estimate to drop since September, just before the 43-day government shutdown.
November 14, 2025 12:22 PM
·
Some sustainability shifts are not particularly challenging and can be implemented with resources already available to farmers and ranchers on their operations.
November 13, 2025 01:00 PM
·
Winter weather will challenge livestock producers working to rebuild their herds despite harsh conditions.
November 12, 2025 01:20 PM
·
Enforceable origin labels could create clearer premiums for U.S. cattle and address concerns some producers have had with competition from foreign imported beef.
November 12, 2025 12:39 PM
·
Rural businesses report softer sales, tougher hiring, and restrained investment — a backdrop that can pinch farm support capacity even if posted prices cool.
November 12, 2025 12:22 PM
·
Friday’s release will be the first WASDE report in about two months, and early estimates indicate a corn surplus is still on the way.
November 12, 2025 12:16 PM
·
