Recent comments by an economics Professor from the University of California Davis projects that “there’s going to be significantly more pain this year than there was last year” with respect to agriculture and the rural parts of the state. Last year, Dr. Howitt suggested that there would be a $2 billion economic impact—this year he “would be very surprised if the economic impact was less than $3 billion.” This will include a loss of more than 20,000 jobs as a result of the drought.
The estimates are driven primarily by the Bureau of Reclamation’s initial announcement last week that all areas with Central Valley Project water service contracts that serve farms and ranches will receive zero surface water allocations. This includes the entire west-side of the Sacramento Valley. The lack of surface supplies in many rural parts of the state has and will continue to lead to an increase in groundwater pumping. California has had one wet year (2011) in the last nine years, which is challenging water agencies and the groundwater resources in many rural areas in California.
The full story is available at: Parched California Will Get No Relief From Drought Pain in 2015.
