A little background: California has historically tried to suppress water prices as a means of enhancing the state’s agriculture business. This has lead to shortages. The drought has exacerbated the problem. Now, California has allowed water prices to rise, and farmers are getting hit with both the higher prices and the shortages. If this isn’t a wet year for California, we may actually have some food shortages. I think the forecasts are still for a wet year.

This article gives a rough idea of how bad the shortages are. From the article:

Grace data reveal groundwater in these basins is being pumped for irrigation at rates that are not sustainable if current trends continue,” Famiglietti said. “This is leading to declining water tables, water shortages, decreasing crop sizes and continued land subsidence. The findings have major implications for the U.S. economy, as California’s Central Valley is home to one sixth of all U.S. irrigated land, and the state leads the nation in agricultural production and exports.

If it is not a wet year, the California economy will find a way to fall further.