Brief
Panama declares emergency as drought threatens canal and farms
A national emergency declared in August will stay in force until June 2027 as El Niño‑linked drought cuts water for the Panama Canal, farms and millions of residents.
By Felo News Desk · Published
Panama announced on 20 October that a national state of emergency, declared in August, will remain in place until June 2027 as an El Niño‑driven drought continues to deplete water supplies for the Panama Canal, agriculture and drinking water, the Guardian reported.
What happened
The rainy season that normally runs from May to December has delivered far less rain this year, leaving rivers, streams and reservoirs at critically low levels. In the Arco Seco (Dry Arc) region, cattle farmer Robert Delgado says his milk output has halved and he is forced to sell high‑value livestock to avoid loss from thirst or starvation. The government forecasts rainfall deficits of more than 50 % in some areas through December.
What the reports add
The Guardian notes that the drought has already forced two temporary restrictions on daily vessel transits through the canal in September, though some were later lifted. It also cites Panama’s environment minister Juan Navarro, who says the last El Niño in 2023 cost the canal nearly a billion dollars in revenue and that the current event could be the worst on record.
What was said
Environment minister Juan Navarro told the Guardian, “Climate change has undoubtedly increased the frequency and also the gravity of El Niño… For Panama, this is life or death. The canal is life and death for our economy, and for our drinking water supply.” Delgado added, “I and other producers have had to slaughter or sell animals of high genetic value simply to avoid the heartbreaking prospect of watching them die of thirst or starvation.”
How it came about
Panama’s economy depends heavily on the canal, which moves about 5 % of global maritime trade and supplies drinking water to roughly two million people—about half the nation’s population. The freshwater lakes that feed the canal’s locks also generate a large share of the country’s hydroelectric power. The current drought follows a severe El Niño event in 2023 and is exacerbated by broader climate‑change trends, according to Navarro.
Response and funding
The government is allocating $80 million (£60 million) for “resilience actions” to mitigate El Niño impacts and is planning a longer‑term investment of about $1.5 billion in a reservoir project to secure water supplies for the canal and the population.
Key facts
- Panama declared a national state of emergency in August 2026 that will stay until June 2027 due to drought. (theguardian.com)
- Rainfall deficits of more than 50% are forecast for some regions through December 2026. (theguardian.com)
- The Panama Canal, handling about 5% of global trade, supplies drinking water to roughly two million people. (theguardian.com)
- The government is allocating $80 million for immediate resilience actions and planning $1.5 billion for a reservoir. (theguardian.com)
- Cattle farmer Robert Delgado reports his milk production has fallen by half and he is selling high‑value livestock. (theguardian.com)
Sources
- [1] theguardian.com — originally reported as “‘For Panama, it is life or death’: how drought is choking the canal that feeds a nation”









