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This study demonstrates the potential value of forecasts to smallholder farmers in Zimbabwe, the majority of whom often suffer severely from the impact of drought. Using crop simulation models to compare yield performances of farmers with and without forecasts, results indicate that, for a drought year, farmers with forecasts (WF) record higher yield gains (28%) compared to those without forecasts (WOF): in particular, farmers located in the most arid regions (NR V) recorded the highest yield gains (42%). A similar trend is observed during a neutral/average year, as farmers WF obtain predominantly higher yield gains (20%) than those WOF. However, during a good year, results show a different pattern as no yield gains are observed. In fact, farmers WOF perform better, suggesting forecasts in this case may not make much difference. Using gross margin analysis, results show farmers WF obtaining higher returns during a drought (US$ 0.14 ha(-1)) and neutral year (US$ 0.43 ha(-1)) but again not for a good year as farmers WOF outperform those WF. To summarize, forecasts can play an important role as loss-minimization instruments especially if the underlying year is an El Nino (drought) year. In conclusion, to attain full economic value of forecasts, complementary policies (currently missing) such as effective communication, improvement in forecast extension skills and promotion of farmer participatory and outreach activities could prove vital in enhancing the value of forecasts to smallholder farmers in general.