The U.C. Davis drought team today released its estimates for the economic impact of the drought this year. Spoiler alert – it’s worse than last year.
- 560,000 acres fallowed, which is 6 to 7 percent
- $1.8 billion in direct ag losses (increased groundwater pumping costs and reduced sales), which is about 4 percent
- Total agricultural employment will continue to grow, but the team estimates job losses, including spillovers, at 18,600 (meaning that without the drought, it would have grown even more)
The full report (pdf)