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Drought causes billions of dollars in economic losses in Nebraska

Analysis by the Nebraska Farm Bureau shows drought has created more than $2 billion in economic losses in the state.

Farmer Nathan Dorn of Firth says margins are tighter heading into 2023. “Yields were down and prices were up to make up for that. Having 50 percent of the crop is not the same thing as having 100 percent of the crop when you sit down at the end of the year and talking to the banker about the economic decisions you have to face.”

NEFB Economist Jay Rempe tells Brownfield he compared USDA’s latest yield forecasts for corn, soybeans and wheat with average trend lines. “That’s not an actual realized loss but it’s what farmers could have had, it’s an opportunity cost if you will if we didn’t have a drought. If you take that $2 billion and spill that throughout Nebraska’s economy and it starts to have a significant impact.”

USDA’s latest production report showed a 14 percent reduction in corn production and a 20 percent loss in soybean reduction. He estimates a $1.1 billion loss in the corn crop, $675 million loss in soybeans and $120 million loss in the wheat crop.

Rempe says crop insurance payments could top more than $500 million this year, making up for part of the losses.