California Farmers Feel Pain

Outlet: The Wall Street Journal

March 25, 2012

FIVE POINTS, Calif.—Sharp cutbacks in water for farmers threaten to trigger renewed layoffs in a large swath of California, eating into the state’s $40 billion-a-year agriculture industry and damping its nascent economic recovery.

Amid an unusually dry winter, managers of the federal Central Valley Project, which delivers mountain water for agriculture, late last month announced an initial reduction in farmers’ water allowance for this year to 30% of the allotment in the driest southern reaches of the valley, down from 85% last year. Now farmers and local agriculture officials are taking in the economic impact they face.

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