Texas ag losses forecast at record $5.2 billion

LUBBOCK, Texas – The blistering drought in Texas has caused an estimated $5.2 billion in crop and livestock losses this agricultural season, a record figure that could still rise, state officials said Wednesday.

AgriLife Extension Service economist David Anderson said field surveys from November 2010 to Aug. 1 this year indicate livestock losses of $2.1 billion and crop losses of $3.1 billion in the state. By the time crops are done being harvested, it might be more.

"There can still be some losses there when we see what's harvested," Anderson said. "I think it's going to get bigger."

The previous record annual loss was $4.1 billion for the 2006 growing season, Texas agricultural officials said.

This year, drought has spread over much of the south, leaving Oklahoma the driest it has been since the 1930s and setting records from Louisiana to New Mexico. But the situation is especially severe in Texas, which is the nation's second-largest agriculture state behind California.

Texas leads the nation in cotton and cattle production. But some parts of Texas haven't had rain since last fall, and forecasters predict Texas' drought will persist through at least September.

The crop losses include cotton, corn, wheat, sorghum and lost hay production. The estimates do not include those from fruit and vegetable producers, horticultural and nursery crops, or other grain and row crops.

Since 1998, drought has cost Texas agriculture $13.1 billion. That figure does not include the loss estimate released Wednesday.

This year, crops and rangeland across the state have been scorched from a lack of rainfall and record triple-digit temperatures. Most of the state has been in the two worst stages of drought since the beginning of May, which means there has been complete or near complete crop failure or there's no food for grazing livestock.

Texas' economy will take direct hit from the losses. Agriculture accounted for $99.1 billion of Texas' $1.1 trillion economy, or 8.6 percent, in 2007, the most recent year data on food and fiber was available from the extension service. Losses in that sector have a ripple effect that's about twice the amount of the actual agricultural loss.

Part of the reason for the high loss estimate is that agricultural products are worth more this year. Strong global demand and tight supplies have helped push up prices for commodities like corn, cotton, wheat and beef.

Consumers will eventually see the cost of the drought passed on to them, although Anderson said last month it's hard to say by how much since processing, marketing, transportation and other costs also play a big role in retail prices.

Texas is in its most severe one-year drought on record. The state would need more than 4.5 inches of rain in the next two months to avoid breaking the 1956 record for driest 12 consecutive months.

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Associated Press writer Betsy Blaney can be reached at http://twitter.com/betsyblaney