It has been a year Central Oregon's ranching community will not soon forget. Persistent drought, a record-breaking wildfire season, and diesel prices that remain near historic highs have combined to create an economic squeeze unlike anything many producers have seen in years. Heading into winter, Jefferson County ranchers are making hard choices about herd sizes, feed costs, and whether to hold on or sell off.

A Snowpack Failure That Changed Everything

The trouble began long before the first fire of 2026. Oregon entered the year with a record-low mountain snowpack — the lifeblood of irrigation systems that water Jefferson County's fields and pastures each summer. The Oregon Water Resources Department flagged water-supply concerns statewide early in the season, with restrictions beginning earlier than usual and cutting into water rights that are typically unaffected in normal years.

For Jefferson County producers who depend on the North Unit Irrigation District and other delivery systems, reduced water flows translated to shortened irrigation seasons and hay crops that came in thin. Fields that normally produce two or three cuttings saw one — or came up short entirely. By the time summer ended, approximately 87% of Oregon was under some form of drought classification, among the worst drought coverage in state history.

Fire Added Insult to Injury

Then came the fires. The Bench Fire burned through the Warm Springs Reservation, and other fires threatened grazing allotments, fence lines, and rangeland across Jefferson, Wasco, and Crook counties. Livestock had to be moved on short notice. Pastures already stressed by drought were scorched further, in some cases taking years to recover.

With hay supplies tight across the region and prices elevated, ranchers purchasing feed for winter face costs that are harder to absorb — particularly when diesel to run equipment, haul cattle, and deliver hay remains stubbornly expensive despite some relief at the pump in recent months.

Tough Decisions Heading Into Winter

Many Central Oregon producers have been running smaller herds than they would like, having sold cattle earlier than planned to reduce feed demand. Others are sourcing hay from as far as eastern Idaho and Nevada to meet their winter needs.

State and federal assistance programs exist for producers experiencing drought-related losses, including:

  • USDA Livestock Forage Disaster Program (LFP) — provides compensation for forage losses on grazing land.
  • Emergency Livestock Assistance Program (ELAP) — covers losses not addressed by other programs.

Jefferson County ranchers are encouraged to contact the local USDA Farm Service Agency office in Madras at (541) 475-3858 for information on available programs and application deadlines.

Despite the hardships, resilience is woven into the culture of Central Oregon agriculture. Ranchers in this high desert have weathered drought cycles before. The question heading into 2027 is whether this year's combination of pressures — drought, fire, and cost inflation all at once — leaves enough margin to weather whatever comes next.