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US (CA): Fallow land and job losses in Central Valley

California is facing another year of severe drought. After three dry years, many irrigation districts have exhausted their surface water reserves and groundwater levels are extremely low. These shutoffs in combination with enforced cutbacks have literally changed the landscape of the world’s most fertile agricultural region, the Central Valley.



According to a preliminary study by the UC Davis Center for Watershed Sciences, surface water shortage this year will be greater than in 2014. Net water shortage to agriculture, after additional groundwater pumping, will be nearly 67 percent, or 1 million acre-feet greater than in 2014. Cropland fallowing because of water shortage is expected to increase by 33% over 2014. The drought is expected to decrease direct farm-gate revenues by 6% and groundwater pumping costs are expected to increase by 31%.

Increased groundwater pumping
California’s farmers make several adjustments in response to the drought. First of all, the limited availability of surface water forces farmers to increase groundwater pumping. However, increasing pumping reduces the surface water by more than 70 percent. Due to the low surface water levels, wells are yielding less while they cost the same to operate. The alternative is to purchase water at a high cost, as much as $1,400 an acre-foot. 

Regional crop shifting is taking place as well. Farmers try to keep their high-value crops including fruit and nut trees alive, but production of lower-value crops decreases or shifts to other areas. Contracts for processing tomatoes for instance, shifted from the Westside of the San Joaquin Valley to the Sacramento Valley (up north).

 

Fallow acreage
The Westside of the Central Valley, part of the Westlands water district, has been suffering from lower allocations than other regions. Due to the decrease in water supply, about 565,000 acres of farmland are expected to be fallowed this year, almost all in the Central Valley. Some regions that have better access to irrigation water supplies, such as the Central Coast and Southern California, respond by slightly increasing plantings. 

Job losses
The drought also results in substantial job losses. Regions with greater surface water shortages and less access to groundwater will suffer larger employment losses due to drought. According to Craig McNamara, president of the state Board of Food and Agriculture, the drought could cost California more than 20,000 jobs.