Current California Drought Will Cost Agirculture Sector Almost $2 Billion

Researchers at the University of California, Davis found in a study released on Tuesday that the California drought, now in its fourth year, is set to cost the agriculture sector $1.8 billion in direct losses this year. The loss represents around 4% of the state’s massive $45 billion agriculture economy. When indirect losses are included on top of direct ones to the agriculture industry, the same study found that this year’s ongoing drought is set to cost the California economy a total of $2.7 billion. The UC Davis study estimated that around 564,000 acres of previously farmable land would be made fallow this year, resulting in around half of the direct loss in revenue.