Brazil’s Supreme Court on Sunday authorized the government to exempt spending on wildfires and droughts in the Amazon and Pantanal regions from this year’s fiscal target as the country grapples with the economic impacts of its worst drought on record.

Brazil is enduring its worst drought since nationwide measurements began over seven decades ago, with 59% of the country under stress — an area roughly half the size of the U.S. Major Amazon basin rivers are registering historic lows,

The flames of tens of thousands of fires have torn over millions of acres this summer, making this year the worst for Amazon fires in nearly a decade, according to Rainforest Foundation US. A staggering 7.4 million acres burned within the first half of this year, a 122 percent increase over last year, the nonprofit said.

Left: A drone view shows floating houses and boats which are stranded due to the drought affecting the Rio Negro, the largest left tributary of the Amazon River, at the Cacau Pirera district in Iranduba, Amazonas state, Brazil September 2, 2024. Photo by Bruno Kelly/REUTERS

Sugarcane farmer Marcos Meloni is still haunted by his battle last month to fight the flames on his land, as the double-edged disaster of fires and drought hits Brazil's agricultural sector hard.

According to the National Center for Monitoring and Early Warning of Natural Disasters (Cemaden), the current drought is the most intense and widespread in Brazil since records began in 1950, exacerbated by a weak rainy season in the north-central region,