Farmers and livestock producers across the nation face mounting challenges as drought tightens its grip on key forage and feed commodities. According to recent USDA data through June 3, approximately 21% of U.S. corn and 16% of soybean acreage are experiencing moderate to exceptional drought conditions. That includes major grain-producing states like Iowa, Illinois and Nebraska, where feed supplies could be strained.
Hay, a critical winter feed source, is similarly affected: about 32% of U.S. hay production is in drought zones, with nearly 8% in severe drought. Producers in primary hay states such as Iowa and Minnesota may see reduced yields and higher market prices . A Kansas State University study highlighted the connection: drought-driven hay shortages can spike prices, prompting herd liquidations or decreased stocking rates.
Cattle operations are particularly vulnerable. USDA Economic Research Service data show that drought-induced pasture degradation leads to decreased herd sizes and higher feed expenses. A one-unit rise in average drought intensity correlates with a 1% drop in herd size, a 12% decrease in hay output and a 5% hike in hay prices, reducing overall farm income by around 4%.
With nearly 13 million acres of U.S. agricultural land under drought declaration, farmers are closely monitoring weather forecasts and market trends. As the 2025 growing season progresses, producers will rely on adaptive strategies—such as increasing supplemental feed, adjusting herd sizes, or sourcing from alternative regions—to manage costs. Meanwhile, conservation measures and drought-resistant forage planting may offer long‑term relief.
Key takeaway: The ongoing drought is most acutely disrupting hay and forage, pushing feed costs higher and pressuring livestock producers. Proactive planning and strengthened supply chains will be essential as summer heat intensifies.
Sources: USDA “Agriculture in Drought” report; Kansas State University hay pricing analysis; USDA Economic Research Service