The Virtual Water Trade (VWT) has been understudied in agricultural watersheds of mid-to-high latitude or similar regions, particularly concerning its relationship with crop production and tradeoffs with hydrological water yields (WYLD). As one of the major global agricultural exporters in the mid-to-high latitude regions, the Nelson River Basin (NRB) covering most of Canadian Prairies, plays a crucial role in global food security. The long-term average projections from the global studies often suggest a warmer and wetter overall future in the mid-to-high latitude regions, favoring crop yields (Y) and VWT. However, projections are lacking how improved Y and VWT from these watersheds will affect WYLD during future droughts and after severe droughts are terminated. Our study develops process-based agro-hydrologic model for NRB and analyses feedback mechanism between Y, VWT, and WYLD under drought and post-drought conditions in the region. The results reveals a rapid recovery of Y and VWT following future droughts, but at the cost of slow restoration of WYLD. The study suggests cropping structure adjustment as a potential mechanism to alleviate WYLD, in response to VWT under future climate change scenarios.