Drought losses costing producers $595 million

COLLEGE STATION – Drought conditions that have plagued farmers and ranchers throughout the year and continue across Texas have led to $595 million in agricultural losses, economists with the Texas Agricultural Extension Service reported recently.

Cotton, the No. 1 cash crop in Texas, has been hardest hit, with Extension economists estimating $285 million in crop losses.

“As we look at the Southern Plains from San Angelo, to Big Spring, Lamesa and on into the Snyder and Roscoe area, it’s just simply burning up,” said Dr. Carl Anderson, an Extension cotton marketing economist.  “If it continues on for another 30 days, half of the dryland crop will be lost, and you can add another 500,000 bales.”

Billy Warwick, an Extension agronomist based in San Angelo, reports, “As you come south (of Interstate 20), that cotton would be lucky to make 150 pounds of lint per acre.  An indication of lucky would be stretching it.  A lot of cotton is six inches tall with one boll on top.  That doesn’t contribute much to yield to say the least.”

Anderson said much of the irrigated areas in West Texas have been hampered by both drought and insect problems.

“Yields are a little less because of insect pressure, and the cost of insect control has been severe on many farmers,” he said.  “In many situations, farmers have been trying to save their crop from insects, and drought has been taking away from it as well.”

Other estimated agricultural losses so far this year include:

• Grain sorghum: $15 million.

• Wheat: $125 million.

• Added irrigation costs: $27 million.

• Wheat grazing: $11 million.

• Forage crops: $50 million.

• Other crops: $20 million.

• Added feed/water cost: $62 million.

 Meanwhile, drought has prevented much of the state’s beef producers from building herds in anticipation of stronger prices.  Dormant pastures continue to result in reduced body condition of livestock and are requiring supplemental feeding.  Hauling water to livestock and herd reduction continued to expand especially in drier areas.  Dr. Ernie Davis, an Extension beef economist, said this could intensify considerably in the next few weeks if dry conditions continue.

Hay production since mid-year has come to a virtual standstill.  Hay production lost to drought is projected at $50 million.  Rain is needed soon to replenish pastures and to achieve an additional cutting of hay prior to the first frost.  If this does not occur, ranchers will be facing another costly feeding cycle through the fall and winter this year, according to Extension beef specialists.

Meanwhile, the Texas cotton crop was planted on 6.3 million acres this spring, with many expecting above average yields.  Only the state’s earliest cotton acres were able to escape the devastating summer drought.

The lower Rio Grande Valley, the lower and upper coast region, and the Central Texas Blacklands produced an average crop that totals close to 1 million bales.

High temperatures of 100 degrees or more and a lack of rainfall have caused a substantial setback across 5 million acres of cotton planted in the Rolling Plains and Southern High Plains of West Texas.  With less than 2 million acres irrigated, the 3 million acres of dryland cotton in the region have suffered significant losses, Extension economists report.

An estimated 1 million acres had already been lost by the beginning of August, according to the Texas Agricultural Statistics Service.

In the Rolling Plains, 1 million acres of cotton stretching south from the Red River to near Abilene are expected to be less than half the usual 300 pounds of lint per acre.  Cotton losses in the Rolling Plains are expected to be at least 250,000 bales, valued at $75 million.

The Southern High Plains region stretching from San Angelo to Big Spring, Lubbock into New Mexico also has been hit hard by high temperatures.  A lack of sufficient rainfall last winter failed to build sub-soil moisture.  Losses in the Southern High Plains are estimated at 700,000 bales, valued at $210 million.  These estimates do not include likely losses in fiber quality, such as a shorter staple length, due to moisture stress.

Of the $285 million in cotton losses, Anderson said the economic impact felt by rural communities and agribusinesses could reach $600 million.

“Government payments will be very welcomed (by the cotton farmers),” Anderson said.  “We’ve been in continuous drought.  Most producers haven’t had time to catch up, and the market price last year was so weak.  The market is better now, but it’s not going to show much in the pockets of producers because of the way the loan deficiency payments work.  Any programs that might be added for disaster reasons would be welcomed.”

Drought conditions have hampered Texas agricultural production four out of the past five years.  The 1996 drought resulted in $2 billion in producer losses while the 1998 drought led to $2.1 billion in producer losses.  The 1999 drought resulted in $223 million in producer losses.