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U.S Drought Lingers Into 2013, Could Pose Long-Term Challenges

U.S Status As Key Agriculture Region Could Be Troublesome If Drought Persists

By , Farms.com

The U.S drought that plagued much of the nation last year, is posing as a threat for 2013 as drought-like weather conditions continue. This will likely be a significant problem as the U.S is one of the key agriculture regions in the world.

In many communities in Nebraska, Kansas, Oklahoma and Texas have seen the worst. In a rural community in Wapanucka, Oklahoma they have lost water all together as the wells have run dry. Officials have since run a line to a neighbouring area for water. While in Texas, state officials are seeking a $2 billion fund in order to finance water projects – as a number of communities are facing shrinking water shortages. The news is even worse for rice farmers in the region, who were told earlier last month that there will most likely not be enough water to irrigate the fields this spring. In Kansas, state officials have enacted penalties for those who exceed water use limits.

The persistent drought is worrisome for farmers who were already hit hard, with multibillions of dollars worth of crop and livestock losses.


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USDA took Trumps comments that China would buy more U.S. soybeans seriously and headline news that the U.S./China trade truce would be extended when Trump/Xi meet in the first week of April was a BIG WIN for soybeans this week! 2026 “Mini” U.S. ethanol boom thanks to 45Z + China’s ban of phosphates from Feb. – August of 2026 will not help lower fertilizer prices anytime soon! 30 mmt of Chinese corn harvest is of poor quality and maybe a technical breakout in wheat futures.

*Apologies! Where we talk about the latest CFTC update as of 10th Feb 2026, managed money funds covered their net short position in canola to the tune of +42,746 week-on-week to flip to net long 145 contracts and not (as we mistakenly said) +90,009 wk/wk to 47,408.