How Does Drought Affect Agriculture?

The primary direct economic impact of drought in the agricultural sector is crop failure and pasture losses. … Indirect impacts of drought in the sector can include reduced supplies to downstream industries, such as food processors, and reduced demand for inputs, such as fertilizer and farm labor.

What is the effect of drought on agriculture?

Farmers may lose money if a drought destroys their crops. If a farmer’s water supply is too low, the farmer may have to spend more money on irrigation or to drill new wells. Ranchers may have to spend more money on feed and water for their animals.