California’s water crisis could cost the state billions of dollars each year if not resolved

New economic data from California shows the state could face anywhere from $3-14 billion in water losses each year if no action is taken.
California has faced water supply challenges for years and is expected to shrink by 12-25% by 2050.

The data collected by researchers at UC Davis and UC Merced shows that without coordinated action, nearly three million acres of California farmland could be taken out of production.
That would mean a loss of 67,000 jobs, severely impacting rural communities.

The research supports the state’s Senate Bill 72, which proposes California’s first-ever water supply target to develop 9 million acre-feet of new water by 2040.

Related Stories
Fertilizer still consumes an unusually large share of crop value.
Pollination costs remain volatile, raising planning risk for specialty crop producers.
Kerry Hartwig from Sukup Manufacturing previews the grain management solutions they plan to share with producers at the upcoming Commodity Classic in San Antonio.
FBN co-founder Charles Baron previews the upcoming Farmer2Farmer event and how technology and AI are shaping the industry, offering growers practical insights and farmer-led strategies for modern agriculture.
The USDA Agricultural Outlook Forum highlights modest price support from tighter supplies across cotton, grains, dairy, livestock, and sugar into 2026.
Farm Bureau Economist Faith Parum discusses the latest Farm Bill proposal and the path ahead for Congress and U.S. agriculture.