Italy is forecast to produce 5% less rice in 2017-18 than the previous season.
Italy, the largest rice producer in the E.U.-28, is forecast to produce 1.5 million tonnes of rice in 2017-18, about 5% less than the previous season, the USDA said.
Although the drought has dropped yields from 6.8 to 6.6 tonnes per hectare, the report said the quality of the crop is expected to be good.
According to the latest figures from the Italian Rice Association, about 230,000 hectares of rice is expected to be planted, about 2% less than in 2016-17.