Applied Economics/2026-03pr
Optimal Drought Management Actions for Cattle Operations on the Laguna Pueblo and Zuni Pueblo Indian Reservations Tatiana Drugova, Research Associate, USU Department of Applied Economics Kynda Curtis, Professor and USU Extension Specialist, USU Department of Applied Economics Man-Keun Kim, Professor, USU Department of Applied Economics
Introduction
Highlights
Agriculture remains a central economic activity on U.S. Native American reservations, particularly in the arid Southwest, where livestock grazing is both a vital subsistence strategy and a deeply rooted cultural tradition (Redsteer et al., 2013). Yet frequent, persistent droughts threaten the financial sustainability of cattle operations in the region. Drought negatively impacts rangeland quality and water availability, which has negative consequences to cattle production and subsequent economic returns (Hamilton et al., 2016; Wold et al., 2023). Recent research indicates that ranch income decreases by as much as 11% when an additional share of pastureland is exposed to abnormally dry conditions and by up to 15% when exposed to severe drought conditions (Rodziewicz et al., 2023).
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The Laguna Pueblo and Zuni Pueblo Indian reservations are located primarily in New Mexico. For Laguna Pueblo, the tribal government is the largest employer (Grugel, 2012), but they do have an active range management program focused on rangeland health, livestock grazing, non-village agriculture, and irrigation. Rangelands occupy approximately 71% of reservation and leased land. These rangelands are used for grazing 4,000 cattle, owned by approximately 100 members of seven authorized livestock associations (Pueblo of Laguna, 2023).
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Drought presents significant operational and financial challenges for cattle ranching on the Laguna Pueblo and Zuni Pueblo Indian reservations. Purchasing hay to keep all cattle during drought is profitable only when hay prices are low, but is riskier, and can lead to losses as prices rise. Selling unsupported cattle becomes the best option for risk-averse ranchers and when hay prices exceed $150/ton, minimizing financial losses. The differences in long-term average returns between drought management options are small for risk-neutral ranchers, suggesting no single best approach for all situations. Having a drought management plan, closely monitoring hay prices and drought conditions, and collaborating with tribal and government programs are key strategies for resilience and optimal decision-making.
On the Zuni Pueblo, tourism and raising sheep are the primary economic activities (AAA Native Arts, 2023). It is estimated that around 90% of the population is involved in the production of jewelry, stone carvings, and pottery ware—either part-time or full-time. Agriculture is used mostly to supplement other economic activities (Grugel, 2012). 1