How much are the losses from the California drought?  Economists have various estimates depending on how the losses are tallied.  The Fiscal Times estimates that the direct losses from fallowed land that is not in production are around $1.8 billion.  But they also point out that if the estimated number of acres of land not in use is too low, losses could be higher.  And that does not account for other losses due to loss of income from businesses that service farmers.  If all of those costs were added in, the total losses could top $2.7 billion.  You can read their analysis here.

Future costs may be even higher.  Land has been sinking due to massive use of groundwater, and that could create problems for infrastructure.  Repairs of damaged bridges, levees, and roads could provide a significant cost in the future as well.

Yahoo News released a report this afternoon which shows that some areas of the Central Valley are sinking at the rate of 2 inches per month due to heavy groundwater withdrawals based on analysis of NASA photos.  Scientists believe that some of the aquifers depleted by the massive pumping may permanently lose capacity, reducing their use as a hedge against future droughts.  You can read that article at https://news.yahoo.com/california-sinking-faster-thought-aquifers-could-permanently-shrink-140333912.html

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