According to estimates made by the John Deere Company, American farmers have lost more than $8 billion in profits due to drought conditions this spring and summer, signaling a major farm decline this year.

The current drought, one of the worst the country has seen in more than 50 years, is hitting farmers hard. More than two-thirds of the nation is experiencing some form of drought, with one-third experiencing severe to extreme drought. The severe weather comes at a bad time for American farmers, who had hoped to raise the largest corn crop in 80 years this summer. Nationwide, about 50 percent of the corn crop is in poor or very poor condition.

While crop losses have been severe, and lost profits extremely high, farmers have benefited from robust federal crop insurance programs. With some insurance policies covering up to 80 percent of losses, many farmers, while not thriving, are seeing the worst of the drought ameliorated thanks to farm programs.

In addition, some officials at Deere anticipate a speedy farm recovery. According to JB Penn, a chief economist at Deere and a former Department of Agriculture official, assuming a return to normal yields, farmers can anticipate higher than average crop prices in 2013, pushing farm revenues up and boosting agricultural activity across the country.

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Written by: Justin Ellison / Farm Plus Staff Writer