Applied Economics/2026-02pr
Optimal Drought Management Actions for Cattle Operations on the Duck Valley and Pyramid Lake Indian Reservations Kynda Curtis, Professor and USU Extension Specialist, USU Department of Applied Economics Tatiana Drugova, Research Associate, USU Department of Applied Economics Man-Keun Kim, Professor, USU Department of Applied Economics
Introduction
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, prolonged droughts increasingly threaten the financial viability of cattle operations in this region. Drought conditions degrade rangeland quality and reduce water availability, leading to lower cattle productivity and diminished economic returns (Hamilton et al., 2016; Wold et al., 2023). Recent research indicates that ranch income can decline by up to 11% when an additional share of pastureland falls under abnormally dry conditions and by as much as 15% under severe drought conditions (Rodziewicz et al., 2023).
Highlights •
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Drought presents significant operational and financial challenges for cattle ranching on the Duck Valley and Pyramid Lake Indian reservations. The two key drought strategies—herd reduction and hay purchases—have varying economic outcomes based on hay prices and rancher risk tolerance. For risk-averse ranchers, selling unsupported cattle is generally more financially sound when hay prices are average or high, while purchasing hay carries greater risk due to price volatility. Ranchers should proactively monitor drought and hay prices, establish a clear drought plan, and work with tribal and government programs to build resilience.
On the Duck Valley and Pyramid Lake Indian reservations in • Nevada, 10.9% and 4.5% of the population is employed in the agriculture, forestry, fishing/hunting, and mining sectors, which is significantly more than the U.S. national average of 1.8% (U.S. Census Bureau, 2022). The area of the Duck Valley Indian Reservation is split evenly between Nevada and Idaho. The primary industries on the Duck Valley Indian Reservation are ranching, farming, and recreational activities such as fishing and hunting, which are enjoyed by both tribal members and visitors (McNeel, 2018). Major economic activities on the Pyramid Lake Indian Reservation include fishing, boating, etc., and a reservation open range for operating and managing cattle herds (Pyramid Lake Paiute Tribe, 2023). Additionally, Nevada is the driest state in the U.S., with an average yearly precipitation of 9.96 inches between 2000 and 2019 (National Centers for Environmental Information, 2023). Between April 2022 and May 2023, on average, 86% of the alfalfa hay acreage and 87% of the cattle inventory in Nevada were affected by moderate to severe drought (U.S. 1