California growers will idle less land than previously due to drought but losses will be around $1 billion to $1.5 billion, compared to an estimated $1.8 billion in 2015, says agricultural lender CoBank. Losses would fall heaviest on farmers with corn, wheat, cotton, alfalfa and pasture land.
In a report, CoBank, based in Denver, estimated 300,000-350,000 acres would lie fallow this year due to drought, compared to 540,000 acres last year. Although winter rainfall and snowpack were nearly normal, “the state’s parched conditions persist … California’s growers and agribusinessses will face another round of water restrictions in the current year but the new restrictions are shaping up to be less onerous than those imposed last year.”
Growers are likely to tap underground water supplies to offset restrictions on irrigation supplies, said CoBank. “Among the crops least susceptible to the drought are the permanent plantings such as tree nuts, citrus and other tree fruits, and vine-grown fruits. These crops yield the highest returns and cannot be fallowed without lasting damage to the trees and vines.