Drought May Result in $2.2 Billion in Losses for California

According to a recent report coming out of Yolo County’s University of California, Davis, the state drought’s impact will not only be environmental, it also will have a devastating effect on the economy. UC Davis’ report reveals that the drought may end up costing the state approximately $2.2 billion in economic losses.

The study indicates other alarming statistics, including the fact that the drought "is responsible for the greatest absolute reduction to water availability for agriculture ever seen" and that "groundwater availability and use is the key to agricultural prosperity." The study also says that the drought will result in a 6.6 million acre-foot reduction in surface water used for agriculture, which will then result in the loss of over 17,000 seasonal and part-time jobs.

The UC Davis report isn’t done with the bad news yet. The study also says that the drought, regardless of rain conditions, will likely continue through 2015.

The report indicates that $1.5 billion of the losses related to the 2014 drought are in the agriculture industry. UC Davis researchers also predicted that overdraft of groundwater is expected to cause additional wells in the Tulare Basin to run dry if the drought continues.

Read more about the report here.