California's worsening drought will cause the state's economy to lose as much as $2.74 billion and nearly 21,000 total jobs this year–and ripple effects of the 4-year-old drought will likely continue through at least 2017, according to an updated study released Tuesday.
The report, authored by the University of California, Davis Center for Watershed Sciences, also revealed that direct costs to the state's agriculture economy will total $1.84 billion and 10,100 direct seasonal jobs. The $2.74 billion figure reflects the cost to all economic sectors and when multiple effects are considered.
That said, increased prices for crops will give a boost to some farmers in areas less affected by the drought and with access to groundwater, according to the authors of the study.
"Central Coast and Southern California regions benefit from slightly higher commodity prices due to decreased production in other parts of the state," the report stated.
It estimates that the 2015 drought will result in the fallowing of 542,000 irrigated acres, mostly in the state's Central Valley. A UC Davis study released in May estimated around 564,000 acres would be fallowed this year, but the update released Tuesday revised the impact "because water transfers, groundwater pumping and surface water deliveries have changed since our preliminary analysis."