Texas agriculture is at a crossroads as drought conditions persist, exacerbating challenges for farmers already facing market fluctuations.

As of July 2026, the U.S. Drought Monitor reports that over 60% of Texas is experiencing moderate to severe drought, impacting crops and livestock across the state. This situation has led to a spike in commodity prices, particularly for cattle and cotton, raising concerns about food security and farmer livelihoods.

“Farmers are feeling the pressure from both the drought and rising costs,” says John Smith, president of the Texas Farm Bureau. “It’s a tough time for everyone in agriculture.”

Cattle prices have surged to an average of $1.60 per pound, a nearly 30% increase from the previous year, while cotton prices have reached $1.30 per pound, representing a 25% rise. This price surge is a double-edged sword: while it benefits some producers, it also threatens the affordability of these staples for consumers.

In addition to market volatility, farmers are grappling with higher operational costs due to increases in feed, water, and energy prices. The Texas A&M AgriLife Extension Service estimates that overall production costs have climbed by 15% over the past year, compounding the challenges faced by an already strained agriculture sector.

The situation has prompted calls for assistance from both state and federal governments. In late June, Texas Governor Greg Abbott announced a $10 million drought relief fund aimed at helping farmers cope with these dire conditions. “We must support our farmers during these challenging times,” Abbott stated during the announcement.

While some relief is on the way, the long-term outlook remains uncertain. Climate change continues to pose significant risks to Texas agriculture, with predictions of more frequent and severe droughts in the future. Farmers are urged to adopt more sustainable practices to mitigate these risks.

In summary, Texas agriculture is facing dual challenges of drought and fluctuating market prices, underscoring the importance of sustainable practices and government support as the sector navigates these turbulent waters.