Irrigation · July 2025 · 5 min read
Drought conditions force difficult decisions about water allocation, crop insurance, and financial survival. Having a plan in place before conditions deteriorate helps you act quickly and protect the long-term viability of your operation.
When water supplies are restricted, prioritize fields with the highest yield potential and crops at their most water-sensitive growth stages. Corn during pollination and soybeans during pod fill suffer the greatest yield loss from stress. Consider abandoning the lowest-potential acres early to concentrate resources where they will generate the best return.
Federal crop insurance provides a financial safety net during drought years. Revenue protection policies cover both yield loss and price declines, while prevented planting provisions apply if drought prevents timely planting. Contact your crop insurance agent before destroying or abandoning any acreage to ensure you meet all appraisal and documentation requirements.
Communicate early with your lender if drought threatens cash flow — proactive conversations preserve trust and open options. Review operating loan balances, renegotiate input delivery contracts where possible, and explore emergency assistance programs from FSA. Selling drought-stressed corn as silage to livestock producers may recover more value than harvesting low-yielding grain.
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