Almost three-quarters of US farmers suffer from substantial crop and income losses due to this year's drought, according to a recent study by the American Farm Bureau Federation (AFBF), an insurance business and lobbying group serving agricultural interests.
The effects of the drought this year are more severe than last year, according to 37% of farmers, who remarked they are destroying and killing current crops that won't mature due to the dry weather. The number shows an increase from 24% last year.
According to the National Centers for Environmental Information, July was the third-hottest month on record for the US and was in the top 10 for all Western states excluding Montana, as per a report from CNN.
In its weekly weather crop bulletin ending the week of August 6, the US Department of Agriculture reported that "rapidly intensifying drought gripped the central and southern Plains and mid-South, depleting topsoil moisture and significantly stressing rangeland, pastures, and various summer crops."
The AFBF estimates nearly 60% of the West, South, and Central Plains are experiencing a severe drought this year.
AFBF President Zippy Duvall noted that the effects of the current drought "will be felt for years to come" by farmers, ranchers, and consumers.
"Many farmers have had to make the devastating decision to sell off livestock they have spent years raising or destroy orchard trees that have grown for decades," he added.
Meanwhile, AP News reported tha Northeastern United States is experiencing rising sea levels, lots of precipitation, and storm surges that cause floods and coastal erosion, which are just a few of the effects of climate change.
Many communities are limiting the use of non-essential outdoor water due to low or dry water supplies. More brush fires are being put out by fire agencies, and crops grow poorly.
Forced Selling of Heards as Grasses Burn, Water Sources Dry Up
Texas is experiencing an extreme drought, which is forcing farmers to sell off their cattle herds earlier than usual as water sources dry up and grass burns up.
Farmers in the Lone Star state reported a 50% decrease in herd size, which was followed by reductions of 43% and 41% in New Mexico and Oregon, respectively.
David Anderson, a professor of Agricultural Economics at Texas A&M, noted that they have such a "movement of cows to market in a decade since 2011", which was the last "big drought" in the region.
This year, farmers and ranchers have focused heavily on the issue of livestock access to water, with 57% reporting local water use limitations, up from 50% last year.
The AFBF reported that major water sources like Lake Mead and Lake Powell, which are currently operating at less than 30% of their maximum capacity, typically supply water to 5.5 million acres of land across seven western states.
Ranchers find it more difficult to salvage their land when inflation is high. Although diesel prices are declining, they are still expensive, making it substantially more costly than in previous years to bring in additional water. The cost of animal feed and fertilizer for grass and crops is also still hefty.
Extreme Weather Impacts Inflation
According to Tamma Carleton, an environmental economist at UC Santa Barbara, extreme weather impacts the economy's supply and demand sides.
The exact effect that severe weather has on inflation has not yet been determined by research, as per a report by Weny News. A change in the cost of agriculture, for example, can be more easily identified than a change in labor productivity.
Additionally, if businesses need to invest in new equipment like air conditioning in warehouses or pay more to secure them, it is "usually the consumer" who gets the burden.
Experts predict that long-lasting heat waves will become more frequent at a time when global inflation is slowing down economic growth.
