Central Oregon is deep in one of its most severe droughts in decades, and Jefferson County's agricultural community is bearing the brunt. With weeks still remaining in the growing season, some area farmers are already running short on irrigation water — or have run out entirely.

The Oregon Water Resources Department has taken the extraordinary step of cutting allotments to senior water right holders, a rare measure that signals just how depleted the region's water supply has become. Bureau of Reclamation data shows streamflows and reservoir levels well below historical averages across Central Oregon, with limited prospects for meaningful recovery before fall rains arrive.

A Triple Squeeze

What makes 2026 particularly difficult, water managers say, is a combination of three compounding factors: limited storage going into the year, an early spring runoff that peaked and receded before summer demand hit its high point, and a prolonged dry stretch that rapidly depleted what little remained in reservoirs and rivers.

For Jefferson County's hay growers, potato and grain farmers, and cattle ranchers who depend on irrigation from the Deschutes Basin and its tributaries, the math is increasingly grim. Some irrigation districts across the region have reduced or suspended deliveries entirely. Ranchers who planned for three or four hay cuttings may be looking at two — or fewer.

Ripple Effects for Ranchers

Reduced hay production creates a downstream problem heading into winter: feed costs rise at exactly the moment ranchers need to stock up. Producers face a difficult choice between purchasing hay at elevated prices on the open market or reducing herd sizes before the snow flies. Younger operations carrying significant debt have fewer cushions to absorb those losses than established multi-generational family farms.

Relief Resources Available

  • USDA Farm Service Agency (FSA) — The Madras FSA office has programs for producers facing drought-related losses, including emergency loans and livestock forage assistance.
  • Oregon Department of Agriculture — Maintains an updated list of state assistance programs under the 2026 drought emergency designation, which includes Jefferson County.
  • Drought.gov — Federal drought monitoring and resource hub for farmers, ranchers, and water managers.

A Difficult Winter Outlook

Looking ahead, the forecast offers little comfort. Oregon's State Climatologist has flagged a developing weather pattern that could bring below-normal precipitation this coming winter — meaning overstressed aquifers, reservoirs, and irrigation districts may not fully recover before next spring's growing season begins.

Jefferson County farmers and ranchers facing water shortages are encouraged to contact the USDA FSA office in Madras or the Oregon Department of Agriculture to learn what assistance may be available.