Farming states traditionally affected by lower water levels are at an aggravated risk of drought because of climate change. This has a major impact on agriculture, and also affects property valuation. Farmers must tap into their capital or take out a farm home loan to deal with the water shortage. Below, we’ve listed the states that are most affected.


Water Shortage Comes with Consequences

The water shortage is the result of above-average summer temperatures, uncertain, patchy rainfall, excess water use, and aquifer depletion. However, this shortage also comes with consequences such as land loss, low water tables, and additional investment. While these consequences can be easily acknowledged, conditions of drought prevalent over several years in a row can be catastrophic. 


U.S. States Most Affected by Water Shortage

The consequences of the water shortage have been felt the most by the following states: 

  1. California
  2. Montana
  3. Idaho
  4. Washington
  5. Oregon
  6. South Carolina
  7. Utah
  8. Nevada


Wildfire Seasons

The United States in 2019 had nearly 60 large fires simultaneously. Just this year, over 8 million acres were destroyed.


Lowering of the Water Table

As the water level goes down, less is available for lifestyle and consumption. With crop and pasture not readily available, livestock is affected and dairy prices go up. As emergency low-interest loans are announced, other instruments like farm home loans also get cheaper.


Additional Investment

The water shortage may mean significant investment may be needed to develop pipelines and supporting infrastructure to redistribute water in affected regions. Ag financing can help farmers take measures to address the water shortages on their own farms.


Get Financial Advice 

Financial wisdom becomes even more important when resources aren’t enough to go around. Our advisors at AgAmerica would be happy to discuss what financing options are available to help you find the right solution for your farm.