In 2024, 27 weather disasters, each with damages exceeding $1 billion, struck the U.S. The National Oceanic and Atmospheric Administration (NOAA) reported that when adjusted for inflation, 2024 ranked fourth in terms of the economic impact of these events, with industries across the economy experiencing an estimated $182.7 billion hit, compared to $92.9 billion in 2023. With nearly 570 lives lost, these disasters will haunt impacted communities for years to come.

Estimated crop losses

Total losses to crops and rangeland exceeded $20.3 billion, accounting for 11.1% of NOAA’s total economic impact from disasters.

Of this total, $10.9 billion in losses were covered by Risk Management Agency (RMA) programs as of February 2024, while approximately $9.4 billion remained uninsured, fell outside policy coverage limits or did not qualify under existing risk management programs.

Crop insurance played a critical role in mitigating these losses, covering over 53% of weather-related damages, including: $11 billion in crop losses due to drought, heat and wildfires; $6.7 billion due to excessive precipitation, flooding and hurricanes; $1.2 billion due to hailstorms; $291 million due to freezes, cold, wet weather and frost.

Additional factors also contributed to significant crop losses, many of which are only partially reflected in RMA data. At least $43 million was lost to insects, $34 million to plant diseases, $24 million to wildlife and $19 million to toxins produced by fungi and other molds. However, these figures vastly underestimate the true extent of losses due to insurance coverage limitations, exclusions and reporting challenges.

Here are a few state totals for 2024:

• Texas suffered the most significant agricultural losses for the third consecutive year, with total incurred damages exceeding $3.4 billion.
• Minnesota ranked second, with $1.45 billion in weather-related crop losses.
• California followed closely behind, with $1.4 billion in crop losses.
• Indiana suffered total losses of $165.7 million, while Illinois’ total was $226.4 million and Ohio’s was $324.5 million.

Losses by crop type

Flooding and excessive precipitation across the Upper Midwest, combined with corn’s dominant role in U.S. agriculture, kept corn losses at the top, totaling $3.85 billion in 2024. Forage losses ranked second, reaching $3.8 billion, and soybeans followed in third, with $3.2 billion in losses.

Losses by cause

Record flooding across the Upper Midwest and horrific hurricanes across the Southeast drove much of the year’s agricultural natural disaster-related news cycle. When combined with other torrential rain events and severe storms across the country, these causes resulted in $6.7 billion in crop losses. Of this, $4.3 billion (63%) was covered by RMA insurance policies. Corn faced the biggest hit under this category at over $2 billion, followed by soybeans at $1.5 billion.

Despite the widespread impact of flooding and hurricanes, drought and heat-related conditions accounted for the largest share of total crop losses, reaching over $11 billion. Of this amount, $5.3 billion (47%) was covered by RMA insurance policies.

Hurricanes Helene and Milton devastated the Southeast, claiming at least 251 lives, destroying hundreds of homes and vital infrastructure and causing economic damage totaling $113 billion. When combined with the economic toll of three other hurricanes, the 2024 hurricane season inflicted over $124 billion in losses. Across the Southeast, at least $3 billion in crop production was lost.

Disaster assistance

For the past three years, farmers have faced billions in uncovered losses due to natural disasters, highlighting critical gaps in federal disaster relief. To address these challenges, President Biden signed the Disaster Relief Supplemental Appropriations Act in December 2022, allocating $3.74 billion in aid for producers who lost crops, trees, bushes and vines due to qualifying disasters that year. However, this assistance covered only 36% of the total uncovered losses, leaving a $6.74 billion shortfall.

In 2023, farmers faced $9.9 billion in uncovered losses, followed by the estimated $9.4 billion in 2024, bringing the three-year uncovered total to over $26 billion in losses left outside insurance and disaster aid programs.

A major step forward came with the passage in December 2024 of the American Relief Act of 2025, which provides $21 billion in natural disaster aid.

While this provides a much-needed lifeline, it still leaves a gap of at least $4 billion, dating back to 2022. Additionally, as of Feb. 12, 2025, the U.S. Department of Agriculture has not yet released details on how or when the $21 billion in disaster aid will be distributed, prolonging the financial uncertainty for farmers. With 2025 shaping up to be another unpredictable year, timely implementation of these funds will be critical to stabilizing farm operations and supporting rural economies.

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This article is a condensed version of a more comprehensive analysis that can be found here.