Which Natural Hazards Cause the Most Agricultural Losses?

Drought is by far the most common cause of economic loss in the agriculture industry

Source: Trace One analysis of FEMA data | Image Credit: Trace One

According to estimates from FEMA, natural hazards are expected to cause an average of $5.1 billion in agricultural losses annually, with drought being the single largest contributor. Drought alone accounts for more than half of these losses, averaging $2.8 billion per year. The financial impact of drought underscores its threat to farmers, particularly in regions reliant on water-intensive crops.

Other significant contributors to agricultural losses include cold waves, which cause $540 million in annual losses, along with hail ($511 million) and hurricanes ($480 million). Events such as inland flooding, strong winds, and heat waves collectively add hundreds of millions in losses to the yearly toll. While less frequent, disasters like tornadoes, wildfires, and winter weather also contribute economic strain in certain regions.

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