Farms.com Home   Ag Industry News

14,500 Agriculture Jobs Lost in California

The High Costs of a Lingering Drought

By Jean-Paul McDonald, Farms.com

California’s agriculture sector continues to suffer from a severe drought that has plagued the state for nearly four years in a row. While the occasional rain does fall, it hasn’t been enough to help alleviate the devastating effects of the drought. A preliminary study released this week by University of California, Davis, Center for Watershed Sciences, highlights the ripple effects the drought is having on the state’s workforce and economy. A full report will be released later this summer.

Commissioned by the California Department of Food and Agriculture, the study exposes the consequences the prolonged drought has created for both the economy and agricultural workers in the nation’s largest fruit, vegetable and nut producing state. The study estimates that job losses in the agriculture sector will reach 14,500 this year, and the state’s economy will take a $1.7 billion hit. The estimates were calculated using computer models and recent water delivery figures.

The study also estimates that six percent of Central Valley farmland will lay fallow this year due to cuts in water deliveries, which amounts to around 410,000 acres of land. Central Valley farmers can expect about 1/3 less irrigation water this year than usual. With depleted rivers unable to sustainably support crop irrigation, farmers will need to pump more ground water, which is estimated to cost around $450 million.

Agriculture makes up less than three percent of California’s $1.9 trillion gross domestic product, but produces an important supply of health foods for the state and country.
 


Trending Video

USDA Feb Crop Report a WIN for Soybeans + 1 Year Trade Truce Extension

Video: USDA Feb Crop Report a WIN for Soybeans + 1 Year Trade Truce Extension


USDA took Trumps comments that China would buy more U.S. soybeans seriously and headline news that the U.S./China trade truce would be extended when Trump/Xi meet in the first week of April was a BIG WIN for soybeans this week! 2026 “Mini” U.S. ethanol boom thanks to 45Z + China’s ban of phosphates from Feb. – August of 2026 will not help lower fertilizer prices anytime soon! 30 mmt of Chinese corn harvest is of poor quality and maybe a technical breakout in wheat futures.

*Apologies! Where we talk about the latest CFTC update as of 10th Feb 2026, managed money funds covered their net short position in canola to the tune of +42,746 week-on-week to flip to net long 145 contracts and not (as we mistakenly said) +90,009 wk/wk to 47,408.