California Drought Will Cost $2.2 Billion in Ag Losses This Year

California’s drought will cost the state $2.2 billion this year in losses and added expenses for its agriculture industry, while cutting 17,100, or 3.8%, of the state’s farm jobs, according to a report released by the Center for Watershed Sciences (CWS) at the University of California, Davis.

The report indicates that, in addition to $810 million in estimated losses there, the center calculates that dairy and livestock producers statewide will be hit with $203 million in losses, while the need to use more groundwater will add about $500 million in pumping costs, reported the Wall Street Journal.

The financial losses point to a need to build new reservoirs in California, where proposals for expanded water infrastructure often have been met with opposition by environmental and other groups, industry officials contend.

The report comes as state officials are ramping up efforts to get people to conserve after a three-year drought that has shriveled reservoirs, increased wildfire risks and prompted dozens of water agencies to institute mandatory rationing. S