A New Crop of Troubles

Severe drought in southern Europe this summer is taking a heavy toll on farmers in Spain, Portugal and parts of France and Italy. With rainfall levels far below normal, many crops, from wheat to lettuce, are suffering. Water is now officially rationed in two-thirds of France and much of Spain; some Spanish provinces have even closed or restricted swimming pools and public fountains.

The European Commission estimates that grain production will drop by about 28 million tons, or about 10%, in the four countries, with output of some types of wheat down by 25%. Olive and vegetable growers...