World food production is undergoing a sweeping transformation in California — the nation’s biggest agricultural state by value — driven by a three-year drought that climate scientists say is a glimpse of a drier future. The result will affect everything from the price of milk in China to the source of cherries eaten by Americans. It has already inflamed competition for water between farmers and homeowners.
In the long term, California will probably move away from commodity crops produced in bulk elsewhere to high-value products that make more money for the water used, said Richard Howitt, a farm economist at the University of California at Davis. The state still has advantages in almonds, pistachios and wine grapes, and its location means it will always be well-situated to export what can be profitably grown.
That may mean less farmland in production as growers abandon corn and cotton because of the high cost of water. Corn acreage in California has dropped 34 percent from last year, and wheat is down 53 percent, according to the USDA.
http://www.bloomberg.com/news/2014-08-11/california-drought-transforms-global-food-market.html