Fortunately, farmers can take some actions to better prepare for and survive a drought. Look carefully at irrigation systems as a long-term investment. Accurate forage inventories in silos, hay mows and other storage areas help you determine feed supplies during a drought. Note the amount and accessibility of each lot of uniform quality forage. Your local feed representative or agricultural agent can assist you with this process.
Diversification can be a good long-term approach to revenue shortfalls from drought.
Contact your Cooperative Extension office or your Small Business Development Center for more information. Also, see your accountant about tax issues related to the drought. If you received federal disaster payments, you may be able to postpone reporting them on your income taxes for a year. Likewise, if you sold livestock because of the drought, you may be able to postpone reporting gains on the sale for as long as two years afterward. Crop testing for feed.