AgWeb posted an article this week on the impacts of the continuing California drought on dairies in the region.  Competition for scarce water has led to fallowed crops and higher costs for irrigation.  A shift to permanent crops like nut trees has also removed acreage once used to produce feed for dairy cattle.  Dropping milk prices have also changed the economic equations for farmers in the area.  You can read the article here.

Source: USDA ARS
Source: USDA ARS