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Drought and inflation: How are Arizona farms faring?

Drought and inflation: How are Arizona farms faring?
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CASA GRANDE, AZ — Across the Southwest and West Coast, tens of millions of people are dealing with unprecedented drought and water restrictions - and perhaps no one is feeling the brunt of that more than farmers.

Agriculture in Arizona has an estimated economic value of about $31 billion, according to the Arizona Farm Bureau, but the job of farming is getting tougher and tougher with external obstacles like the ongoing drought and inflation ever-present.

Earlier this summer, ABC15's Nick Ciletti followed up with Nancy Caywood, a third-generation farmer in Casa Grande whose grandfather opened Caywood Farms back in 1930.

Since 2021, Nick has tracked Nancy and her farm to see how she's handling big issues like the drought and inflation. With reservoirs across the Southwest hitting record lows, Nick wanted to see how Nancy's farm was handling the situation.

"These are beautiful flowers," said Nancy as she and Nick walked around a field of alfalfa - half of which was planted, the other half lay empty.

The beautiful flowers, unfortunately, are hiding an ugly reality - Nancy's farm has nowhere near the water it needs.

Of the 255 plantable acres, only 35 acres have crops, says Nancy, due to a lack of water. In fact, there's not even enough water to plant any cotton, one of Caywood Farms' signature crops over its nearly 100 years in business.

It's all due to low water levels in the San Carlos Reservoir. Nancy says she hasn't gotten any water from the reservoir since April.

Storage in the Coolidge Dam was only at 824 acre-feet as of August 13 - a mere fraction of the reservoir's more than 900,000 capacity, according to groups like the Association of State Dam Safety Officials.

"It's very emotional to walk through here and hear the crunch," says Nancy. "It should be soft."

In a good year, Nancy's farm would yield anywhere from eight to 10 cuttings of alfalfa; so far this year, they've only had one cutting.

"It's killing us - and if we don't get any water, how can we go on," said Nancy in a 2021 interview with ABC15. Caywood Farms is all too familiar with the struggles of running dry.

But then in 2023, hope was once again flowing through the farm after an active monsoon season and heavy winter snowfall - but it wouldn't last.

According to a state tracker, there is at least some level of extreme long-term drought now in all 15 counties across Arizona.

Nancy says at times, it's easy to feel "hopeless."

"You have your water assessment, rising costs, and no water - How do you keep going?" Nancy asks.

But it's not just dollars and cents Nancy is worried about - it's also the family history that has been deeply rooted in this land for nearly a century; Nancy's grandfather started the farm back in 1930.

"It's our legacy," says Nancy. "It's in our blood. And we love agriculture."