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Economic impact of California drought estimated at more than $1 billion

About 10,000 jobs may also be lost

By Diego Flammini, Farms.com

As the state of California continues to battle through one of the worst droughts on record, a clearer picture of the actual impact of the drought is being painted.

A report by the University of California Davis Center for Watershed Sciences estimates the economic impact of the drought is estimated to be about $1.84 billion, with about 10,100 seasonal jobs being lost in the process.

The report also states that the 2015 drought is forcing 30% more workers and cropland out of production compared to the 2014 drought.

Drought

The researchers used the latest technology and water level estimates to come up with conclusions about the impact the drought is having on California agriculture, including:

  • The direct cost of the drought to agriculture is $1.84 billion for 2015
  • Total jobs lost as a result of the drought could be 21,000
  • Water shortages of 2.7 million acre-feet result in about 542,000 acres of idle land

Along with the statistics, the researchers said that new state groundwater laws could help achieve sustainable yields and reverse the depletion of water reserves.

A NASA report shows that the drought is causing land in the San Joaquin Valley to sink at a faster rate than ever before.

“Because of increased pumping, groundwater levels are reaching record lows—up to 100 feet lower than previous records,” said Department of Water Resources Director Mark Cowin. “As extensive groundwater pumping continues, the land is sinking more rapidly and this puts nearby infrastructure at greater risk of costly damage.”

For example, land in the Tulare basin sank 13 inches in eight months or 1.6 inches each month. Areas close to the California Aqueduct sank up to 12.5 inches, eight of which occurred in just four months of 2014.

The current U.S. Drought Monitor shows that about 92% of the state is in a severe drought.


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