Drought Forces Tough Decisions for Nebraska Farms

By Scout Nelson

Persistent drought continues to create major challenges for farmers and ranchers across Nebraska. Dry conditions have reduced crop production, limited grazing, increased financial pressure, and affected businesses that depend on agriculture. As drought continues into another growing season, producers are being encouraged to carefully evaluate their operations and make informed decisions.

Jessica Groskopf, regional Extension agricultural economist at the University of Nebraska Panhandle Research and Extension Center, said the drought has lasted for more than 100 consecutive weeks in some western Nebraska counties. Dryland acres placed into prevent plant programs reduce spending on seed, fertilizer, and crop protection products, affecting not only farms but also local agribusinesses, retailers, and rural communities.

Although prevent plant programs help recover part of earlier production costs, they do not replace all farm income. Producers still face loan payments, operating expenses, and future production costs. As drought continues, financial stability becomes more difficult for many operations.

Groskopf urged producers to work closely with a trusted advisory team that includes a banker, crop insurance agent, and tax accountant. Every farm has different financial conditions, so decisions should be based on each operation's balance sheet, working capital, and debt level instead of comparing with neighboring farms. Producers may need to review debt restructuring, tax planning, asset sales, or additional income opportunities.

Cattle producers face added pressure from limited grazing, lower forage supplies, and higher feed costs. Ranchers should carefully evaluate pasture conditions, hay inventories, and carrying capacity before making herd management decisions. Early planning can help protect long-term financial stability. Some producers may also qualify for tax deferral options if herd reductions become necessary.

Nebraska Extension also offers assistance with feed planning, ration development, and financial analysis. Government programs may provide support, but producers are encouraged to maintain communication with lenders to ensure operating credit remains available until assistance arrives.

Groskopf also highlighted the emotional challenges created by prolonged drought. She encourages producers to seek help when needed, stay connected with their communities, and participate in local events that provide support during difficult times.

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