Drought Update – September 25, 2012

The portion of the lower 48 states experiencing moderate to exceptional drought increased yet again, to 65%, according to the September 18 U.S. Drought Monitor. In 41%of those states, the drought conditions are considered “severe, extreme or exceptional.” In addition, 54%of the country was in moderate drought or worse.

The majority of the country’s corn and soybean acres are affected, and while it’s too early to predict the full extent of agricultural damage, based on weather data, the losses will likely be greater than 2011 and could rival the flood losses of 1993. Some think losses could be as great as the 1988 drought, but it is still too soon to make that determination.