Farmers and producers across the Southeast have been hit by wave after wave of hurricanes, each one adding new damage and more financial pressure. Eleven hurricanes in just eight years have left behind an unprecedented trail of damage, making each recovery effort harder than the last. Just this year, farmers in the Southeast have weathered three major hurricanes – Debbie, Helene, and now Milton – which hit barely two weeks after Helene. In many places, farmers were still navigating floodwaters from Helene, having to use airboats just to reach their fields.
The impact has been staggering. Florida counties affected by Hurricane Milton generate more than $7.4 billion each year from crops and livestock, according to the Farm Bureau. So even a 20% loss could amount to nearly $1.5 billion, and that’s not even counting infrastructure or timber losses. More than half of the area’s vegetable crops were affected, and the state’s iconic citrus industry took a direct blow. Milton also dealt a bit to Florida’s fruit and tree nut crops, affecting counties that produce 83% of the state’s output. This includes nearly all the state’s Valencia and navel oranges, 94% and 90%, respectively.
Florida’s sugarcane farms were also right in Milton’s path, with about 86% of operations affected. Intense winds caused the talk stalks to bend or break, a problem known as lodging. This damage will make harvest much tougher and cut into yields, a hard hit since the storm came just weeks before harvest was set to start.
For livestock farmers, recovery after these hurricanes is going to be an uphill climb. The storm-hit counties account for about $450 million in cattle, $210 million in milk, and $200 million in horses, meaning the damage is substantial. High winds tore down barns and fencing, scattering herds and leaving farmers facing to get their animals back. Dairy farmers were especially hard-hit by the power outages, with cooling systems down and milking schedules thrown completely off. These setbacks are piling on to what has already been a financially challenging year for many in the livestock industry.
Financial Flexibility: A Pathway to Hurricane Recovery
For farmers who’ve lost entire crops, the financial aftershock will be felt for years to come. Immediate cash flow has taken a significant hit, and input financing for essentials like chemicals and seeds is more challenging with supply companies struggling to recoup costs.
“Flexible financing options, such as Conterra’s interest-only loan products, provide some relief,” comments Conterra Relationship Manager Robby Frantzis. “This gives farmers the flexibility to make interest-only payments in hard times and keep cash flow moving as they regroup.” This breathing room can make all the difference when it comes to covering essential costs and focusing on the most critical parts of the operation during rebuilding.
“Most clients and prospects I have talked with have told me their current lenders are tightening up on them during this time,” Frantzis continued. “They are having to use cash or high-interest capital to salvage their crops or rapidly replant for this year.” This tightening in traditional lending options can be frustrating, particularly when access to affordable capital is critical to get production back on track. Having cash flow flexibility is essential, especially in the face of extensive losses, and short-term, interest-only loan options can create stability as farmers make plans for the upcoming season.
Insurance Support and USDA Aid Provide a Safety Net
Recovering from hurricane losses is no simple task, but resources like crop insurance and USDA support have become lifelines for farmers dealing with severe storm impacts. Many producers are relying on “Act of God” claims to help bridge the financial gap until they can replant or begin the next season. Knowing what’s available through crop insurance and staying on top of claims is important for bouncing back after a storm and for planning ahead in a time when weather is increasingly unpredictable.
In support of hurricane-hit farmers, the USDA has begun issuing payments to agricultural producers impacted by recent natural disasters. This includes $143 million in crop insurance indemnities specifically earmarked for Florida farmers affected by Hurricane Milton. This assistance provides a much-needed cushion for many producers, helping them find some stability as they weather the financial impact of recent challenges.
Looking Forward: A Long Road to Recovery
In agriculture, resilience is as essential as rain, but facing back-to-back hurricanes has tested that resilience to the fullest. From vegetable and citrus crops to sugarcane and livestock, the financial toll on agriculture in the Southeast is heavy. While crop insurance, USDA support, and flexible financing options offer important lifelines, the road to recovery will be long.
As farmers clean up and rebuild, they’re reminded of the power of support—from industry lenders to government programs—that can help them keep moving forward, even when the odds seem stacked against them. These hurricanes may have left scars on Southeast fields and farms, but they’ve also shown just how strong the farming community can be when it comes to preparation, resilience, and recovery. And with that, the region’s producers will rebuild stronger, continuing to feed the nation through good times and bad.
Sources:
Florida’s farmlands, iconic orange groves recovering following back-to-back hurricanes – ABC News
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Disclaimer: Please note that the information provided in this article is for educational and informational purposes only, and should not be construed as financial or investment advice. While we have made every effort to ensure the accuracy and reliability of the information presented, Conterra Ag Capital and its affiliates make no representation or warranty as to the completeness, correctness, timeliness, suitability, or validity of any information contained in this article. You should always consult a qualified financial advisor, tax professional, or other qualified professional for advice on your specific financial situation.
