Natural hazards could lead to immense losses for Idaho farms

Many factors can play a role in higher costs for groceries, however one factor comes in many forms and could create significant loss for farms in Idaho and abroad.

A recent analysis from Trace One, a company specializing in regulatory compliance solutions for the food and beverage industry, showed that farms in Ada County are expected to lose a total of $108,379 per year to natural hazards.

Though some areas can be faced with flooding, drought or devastating heat waves, the agricultural areas in the Treasure Valley could be severely damaged by cold waves.

According to the analysis, “Cold waves are most prominent in the Midwest and Mountain West, where freezing temperatures can damage crops and livestock operations.”

Citing estimates from FEMA, the analysis reported that natural hazards lead to an average loss of $3.4 billion on the part of the ag industry each year. Drought is the chief contributor to those losses, topping $1.8 billion. Hurricanes cause $471 million in losses on average each year, flooding causes $424 million in losses, and cold waves cause $278 million in losses.

“Events such as hailstorms, strong winds, and heat waves collectively had hundreds of millions in losses to the yearly toll,” the analysis stated. “While less frequent, disasters like tornadoes, wildfires and winter weather also contribute economic strain to certain regions.

In Ada County, the expected annual loss due to cold waves has an average annual loss total of $108,379, which adds up to about $95 per farm, with 1,142 farms. The annual loss rate is .07%. Total agricultural value is approximately $165.5 million.

Comparatively, the total expected annual loss across the U.S. is $3.38 million, totaling $1,779 per farm with a total of 1.9 million farms in the country. The loss rate is 0.69%. Total agriculture value in the U.S. is $488.7 billion.

One state, California, produces 12% of the country’s total ag value and bears 37% of the losses at $1.2 billion each year. Santa Barbara County alone has expected annual losses of $240 million, which adds up to $175,000 per farm in there.