Another major drought is upon us. 95 percent of the western U.S. is now in drought, the most in at least the last 100 years<\/a>. Montana\u2019s governor recently declared a statewide drought emergency<\/a>. For the first time ever, the U.S. Bureau of Reclamation is about to declare an official shortage<\/a> on the Colorado River, which supplies most of the Southwest. Last night I reprogrammed my lawn sprinkler system to comply with the city of Bozeman\u2019s new drought watering restrictions<\/a>.<\/p>\n It\u2019s not a great situation. A bad one, in fact. But just how bad is it? How much harm can we expect this drought to do to agricultural production and rural economies? This is exactly the kind of question that natural resource economists like me work on. It turns out, though, that the impacts of drought are surprisingly hard to find.<\/p>\n