AMARILLO -- Drought losses by Panhandle farmers and ranchers will cause the region's economy to lose nearly $500 million, according to estimates by economists with the Texas Agricultural Extension Service.
Unless the rains start coming the situation will only worsen, said James D. Sartwelle III, risk management economist with the Texas Agricultural Extension Service in Amarillo.
According to Sartwelle, the damage that has been done to date will cause an estimated $137.5 million in direct losses to producers. In turn, losses in the Panhandle are projected to reach $462.5 million. These figures include producer loss and resulting losses for industries associated with harvesting, transporting, processing and marketing of agricultural and food products.
"The area's corn crop is being hit hardest by the drought," Sartwelle said. Damage done to irrigated corn crops has reached the 20 percent mark, while dryland corn crops received unlimited losses. The total direct loss to producers is an estimated $79 million.
For other crops, direct losses are projected at sorghum, $24.2 million; cotton, $28.8 million; soybeans, $2.5 million, and peanuts, $3 million.
Lack of moisture has affected range and pasture conditions to the point many cattle producers are faced with finding additional pasture for their stock, supplemental feeding, or herd reductions. According to the recent USDA crop condition report, 68 percent of area pasture and rangeland received a poor to very poor rating.
"To date, widespread supplemental feeding or liquidation has yet to occur, so the costs of these activities aren't included in the loss estimates for the region," he said.
"In the absence of timely rains in the very near future, area cattle producers face tough decisions soon," Sartwelle said.
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