I just heard some disturbing news on CNBC, but I can’t find an equivalent article online (and this provides some mitigation). One of the most unfortunate parts of American agricultural history happened to occur during the Great Depression. A combination of unsustainable agricultural practices and a drought lead to the Dust Bowl which, among other things, caused the second greatest population migration in American history.

With all of the other problems facing our economy, California can’t afford more water problems:

The Central Valley Project has made a preliminary decision to cut off all water for irrigation this year. The State Water Project is set to deliver just 10 percent of its normal allocation to farmers. That leaves producers to leave land fallow or dependent on precious groundwater supplies.

The lack of water has an impact beyond the farm gate. The study estimates that Californians, both producers and those whose livelihoods are tied in some way to agriculture, will lose between $1.6 billion and $2.2 billion in direct and indirect income.

The study also estimates that 60,000 to 80,000 Californians will lose their jobs. Most will be relatively low-paid field workers who will find it difficult to find other jobs.

The CNBC report pointed out that in a particular almond farming community, water was costing 5 times as much this year, and banks would not provide loans to farmers without proof they could obtain the water necessary for their crops.

For some interesting (and highly political) commentary on the potential man-made cause of the crisis, see this and this.

UPDATE

I have no idea how alarmist this is. I don’t know what the normal fluctuations in water prices are, and it very well may be standard banking practice to require proof of water during drought periods. Still, searching for “California water” turns up a lot of interesting articles. I had no idea.