How does drought affect the economy beyond agriculture?

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Although drought’s effects often begin on farms and ranches, they extend far beyond agriculture. Low water levels can disrupt commercial shipping on major rivers, raising transportation costs and delaying deliveries of grain, fuel, fertilizer, and other bulk commodities. Drought can also reduce hydroelectric power generation, strain water-intensive industries, and increase costs for businesses and consumers, making it an economy-wide event rather than simply an agricultural problem.