WASHINGTON, D.C. – Major disasters and severe weather caused over $21 billion in crop losses in 2023, according to an American Farm Bureau Federation analysis released Feb. 29.

In 2023, 28 weather disasters, each with damages exceeding $1 billion, struck the U.S. coast-to-coast.

“In 2023, over half of all estimated crop losses ($11.7 billion) occurred in just five states: Texas ($4.8 billion), Kansas ($3 billion), Nebraska ($1.3 billion), Florida ($1.3 billion), and California ($1.1 billion),” Daniel Munch, American Farm Bureau Federation economist, told Farm World.

As the nation’s hardest hit state in 2023 for the second year in a row, Texas incurred losses primarily made up of $2.3 billion in damages to cotton, $1.5 billion in damages to forage and rangeland, and $408 million in wheat damage of the over $4.8 billion in estimated crop losses.

According to the National Oceanic and Atmospheric Administration (NOAA), 2023 ranked ninth in total inflation-adjusted economic impact of these events, with industries across the economy experiencing an estimated $92.9 billion hit, compared to $178.9 billion in 2022.

In 2022, nearly 70 percent of crop losses (14.7 billion) occurred in the top five states: Texas ($6.5 billion), Kansas ($3.4 billion), Nebraska ($2.1 billion), South Dakota ($1.5 billion), and Oklahoma ($1.3 billion), Munch told Farm World.

“The magnitude of loss was lower in 2023 for Texas, Florida and California, but higher in Kansas, and Nebraska,” he said.

The report said updated crop and rangeland damage estimations for 2023 showed the impacts of natural disasters on domestic farm production. The assessment puts total crop and rangeland losses from major 2023 disasters at over $21.94 billion, or 23.6 percent of NOAA’s total economic impact figure.

Of that figure, nearly $12 billion in losses were covered by existing Risk Management Agency (RMA) programs as of February 2024. Nearly $10 billion in losses were not insured through RMA, existed outside policies’ coverage levels, or did not qualify under an existing risk management program.

Moreover, drought, excessive heat and wildfires alone accounted for over $16.59 billion in total crop losses; $3.99 billion was linked to excessive precipitation, flooding and hurricane events; and $1.37 billion was caused by hailstorms, the report said.

In 2023, drought shifted and was more prevalent across the central Plains and down to the Gulf Coast, moving corn losses into the first-place spot over forage and bumping soybeans losses up by about $740 million. Wheat losses increased by about $620 million, primarily driven by drought in Kansas, Oklahoma and Texas.

The report said cotton losses remained a bit above $3 billion as drought persisted in Texas’ cotton-growing regions. Hurricane impacts on both California and Florida moved fruit and nuts losses from $400 million in 2022, to nearly $1.6 billion in 2023.

Oklahoma and Texas led with over 30 percent of liabilities indemnified, linked to drought. Connecticut, Massachusetts, Vermont, and New Hampshire ranked very high – a result of extreme flooding that battered the region, and a larger percentage of their production in July 2023.

“Notably, in 2023 over 55 percent of crop losses from the analyzed disasters were protected through crop insurance,” Munch said. “This ranged from a low of 21 percent in Maine to a high of 72 percent, and 67 percent in South Dakota and Arkansas, respectively.

“States with a higher concentration of row crop production generally benefit from better access to crop insurance options, resulting in more acreage being insured at higher coverage levels,” he added.

Moreover, over half of the over $21.9 billion in crop and rangeland losses in 2023 were effectively protected under existing risk management programs, with the remainder highlighting the importance of inclusive protections for growers of all crops in all regions of the nation.

“Not to mention, the full extent of damage across the sector is likely far higher when livestock, infrastructure, timber, and other ag-related factors are considered,” he said.

When ask how last year’s weather-related damage compared to previous years, Munch told Farm World, “Analyzing the impacts of distinct weather events proves challenging due to their unique nature.

“For instance, the 2020 derecho in Iowa impacted a relatively confined area of the state, in contrast to the more pervasive effects of the subsequent drought,” he said.

“Our estimates put derecho losses at $500 million, while alternative estimates range between $600 million and $800 million,” he added. “Compared to Iowa losses from drought in 2022, which amounted to an estimated $390 million, the derecho’s damages surpassed those of the drought.”

He said, “However, when considering the estimated losses from the 2023 Iowa drought, reaching $1.03 billion, the derecho’s impact appears comparatively lower. (But) it is essential to exercise caution when drawing direct comparisons between the two events, given their inherent differences.”

He said much of the damage from Kentucky’s tornadoes and nearby states in 2021was to infrastructure, including rural homes, and grain bins, “which is not captured in my crop loss estimates.

“Additionally, the tornadoes occurred in December, which is after most crops are harvested,” he said. “That said, it is hard to make any comparison to my crop loss numbers, and that specific event.

“NOAA did categorize the Kentucky tornadoes as a billion-dollar-weather event, meaning the total economic losses were over $1 billion,” he added. “To the extent of how much of that was agricultural-related is unknown.”