Mild Winter Causes $8 Billion in Economic Losses in Northern Plains and Upper Midwest

The northern Plains and Upper Midwest experienced one of their warmest winters on record, resulting in substantial economic consequences. The mild weather, characterized by near-record low ice coverage on the Great Lakes and significantly reduced snowfall, led to an estimated $8 billion in economic losses. Key states affected included Minnesota, North Dakota, Wisconsin, Michigan, and Iowa.

The unseasonably warm temperatures forced the cancellation or scaling back of numerous winter activities, such as ice fishing competitions and ice castle festivals, which are vital for the local economy. Many seasonal workers faced layoffs, and businesses related to outdoor recreation, hospitality, and snow removal reported substantial financial setbacks.

AccuWeather’s analysis, which used a combination of direct and indirect impact assessments along with insured and uninsured losses, highlighted the broader effects on business logistics, transportation, and tourism. The Federal government has responded by offering economic injury disaster loans to affected businesses in the region. The warm winter’s impact is attributed to a combination of climate change and a strong El Niño pattern, which shifted typical storm tracks away from the region, reducing snowfall. Looking ahead, meteorologists anticipate a potential shift to La Niña conditions next winter, which could bring colder temperatures and more typical winter conditions back to the area.