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USDA Pays Colorado River Region Farmers Billions for Losing Crops, but Not to Use Less Water

By Kaleb Roedel

Farming and ranching in the Western U.S. sucks up 75% of the Colorado River basin’s water supply. A new analysis shows the federal government is paying these farmers billions in crop insurance, but not helping them adapt to climate change.

From 2017 to 2023, farmers in the Colorado River region received $5.6 billion from the U.S. Department of Agriculture (USDA) for crop losses caused by drought, according to a report from the nonpartisan Environmental Working Group. That includes farmers in Arizona, California, Colorado, Nevada, New Mexico, Utah, and Wyoming.

More than $2 billion of the drought-related crop payments went to farmers growing hay and alfalfa for beef and dairy cattle, the analysis found.

During that same six-year span, the USDA paid farmers $521 million to install efficient irrigation systems through its Environmental Quality Incentives Program, one of the agency’s largest conservation initiatives.

But that program doesn’t help farmers use less water since the West has a use-it-or-lose-it policy, said report author Anne Schechinger, an agricultural economist with the Environmental Working Group.

“The money that we all spend on these conservation irrigation practices – kind of wasted money,” she said. “Because we're paying farmers to use more efficient irrigation practices, but then they still have to use their whole water allocation.

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Kansas Wheat Harvest 2026 | Three John Deere S7 700 Combines in Action

Video: Kansas Wheat Harvest 2026 | Three John Deere S7 700 Combines in Action

Kansas Wheat Harvest 2026 is underway near Alden, Kansas!

In this video, I spend time with Frederick Harvesting, a custom harvesting operation based in Alden, Kansas. Back at their home farm, three new John Deere S7 700 combines equipped with John Deere HDF40 draper heads work through a drought-stricken winter wheat crop while one of the farm's John Deere 8R 370 tractors pulls a Brent 1398 grain cart.

Most of the Frederick Harvesting crew was already busy cutting wheat in southwest Kansas, but these machines remained at home to finish up local fields. Throughout the video, I explain what is happening, discuss the effects of dry conditions on the crop, and capture plenty of aerial footage showing the combines working with the grain elevator at Alden in the background.