Extreme weather events cause significant crop yield losses at the farm level in German agriculture

•We estimate economic effects of extreme weather events on crop yields in Germany.•We combine 423,815 observations of farm-level yields with weather, crop-specific soil moisture and phenology.•Drought is the most relevant climate extreme in German crop production.•Average annual losses due to drought in winter wheat alone exceed 23 million Euros.•Drought effects became more relevant in the recent past.•Results provide policy makers with empirical insights to regionally prioritize the support of weather risk management and adaptation measures and assess their respective public costs.