A state board’s proposal to help fish populations by increasing water flows down the Merced River would hurt the local ag industry, according to a new report done for the Merced Irrigation District. If the State Water Resource Control Board’s proposed Bay-Delta Plan is approved, the report predicts Merced County’s economy would shrink by up to $231 million. “This magnitude of change in long-term surface water supply reliability could lead to a structural change in the agriculture section,” the report said. “Such a drastic reduction could likely result in a countywide contraction in the agricultural sector.”