- All 33 New Mexico counties were declared drought disaster areas.
- Farmers and ranchers may qualify for low-interest emergency loans.
- Most of the state is experiencing severe or extreme drought.
- Applications for federal assistance are due by Dec. 24, 2026.
- State leaders have also declared a drought and wildfire emergency.
Friday, May 29, 2026 — The U.S. Department of Agriculture has declared all 33 New Mexico counties drought disaster areas, opening the door for farmers and ranchers affected by drought-related losses to apply for low-interest emergency loans. The declaration follows worsening drought conditions across the state, where the U.S. Drought Monitor reports that all of New Mexico is experiencing some level of drought, with most areas classified as severe or extreme drought. Eligible producers may apply for loans of up to $500,000 to help cover production expenses, essential living costs, farm reorganization efforts, or certain debt refinancing needs. The federal application deadline is Dec. 24, 2026. The announcement comes as New Mexico faces the effects of an exceptionally low mountain snowpack and ongoing dry conditions, prompting Gov. Michelle Lujan Grisham to declare a statewide drought and wildfire emergency while also promoting a new online portal with drought, weather, and fire-risk information.
Details are reported by Source Mexico
in the article below, posted under the Creative Commons license CC BY-NC-ND 4.0.
Drought prompts federal agency to offer emergency loans to New Mexico farmers
by Patrick Lohmann, Source New Mexico
May 28, 2026
The United States Agriculture Department on Tuesday declared a drought disaster in all 33 New Mexico counties, making farmers and ranchers who suffered livestock or other losses eligible for low-interest emergency loans.
The USDA’s two disaster declarations cite the United States Drought Monitor, which on Thursday shows all of New Mexico in some stage of drought, with most of the state experiencing “extreme” or “severe” drought.
The loans can pay for production costs associated with a disaster, essential living expenses, farm reorganization costs or the refinancing of certain debts, according to the USDA.
The federal deadline to apply for the loans is Dec. 24, 2026. USDA officials directed farmers and ranchers interested in the loans to their local Farm Service Agency officers for more information.
Extremely low snowpack this winter exacerbated ongoing drought in New Mexico and across the West. Recently, Gov. Michelle Lujan Grisham declared a drought and wildfire emergency, which directed a state task force to help local governments as much as possible.
The governor’s declaration also coincided with the publicization of a new website — the Drought Information Portal — that contains an array of state and federal resources regarding the ongoing drought, weather conditions and fire risk.
A recent industry report found that New Mexico’s food and agriculture industries generated more than $50 billion in economic activity in 2025, including employing 146,000 people statewide who work in farm or food industries and earn $5.9 billion in wages.
Source New Mexico is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Source New Mexico maintains editorial independence. Contact Editor Julia Goldberg for questions: info@sourcenm.com.
