California agriculture is showing more resilience to the state’s historic drought than many had anticipated, according to an analysis released this week. The report from researchers at the Center for Watershed Sciences at the University of California, Davis, points out that crop fallowing and job losses have been reduced by groundwater substitution, water trading and operational flexibility. Preserving the most valuable crops has helped offset the economic impact of the drought, according to the analysis, which still pegs direct agricultural costs of the drought at about $1.84 billion and 10,120 jobs, including part-time jobs. Taking multiplier effects into consideration, total agricultural output losses for 2015 will be as high as $2.74 billion and nearly 21,000 jobs, the analysis projects. In 2013, California’s 77,900 farms and ranches received $46.4 billion for their output, according to the website of the California Department of Food and Agriculture. Uneven Effects The analysis finds that the effects of drought are distributed unevenly. In some regions with limited groundwater reserves the economic and employment impacts are very severe, while in others the increased cost of expanded groundwater use is partially offset by high crop prices. If the drought continues to 2016 or beyond with similar intensity, [...]
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