The U.S. Bureau of Reclamation reports that surface water delivery to thousands of California farms will be shut off March 1. Water will not be delivered for at least three weeks but could possible stay off longer.
It seems pretty clear fruit and vegetable crops, and therefore their prices, will see increases later this year. Some farms will continue to water their crops but will have to use more expensive alternatives to the cheap Bureau of Reclamation water. Roughly one million acres of cropland will not have access to water because of restrictions that are set to be put in place soon.
It is currently estimated the drought will result in a loss of 40,000 jobs and over a billion dollars in wages in the San Joaquin Valley.
http://www.huffingtonpost.com/2009/02/20/drought-to-cut-off-federa_n_168759.html