Severe drought last year caused the California agriculture industry to shrink by an estimated 8,745 jobs and shoulder $1.2 billion in direct costs as water cutbacks forced growers to fallow farmland and pump more groundwater from wells, according to new research.

In a report prepared for the California Department of Food and Agriculture, researchers calculated that reduced water deliveries resulted in 395,000 acres of cropland left dry and unplanted — an area larger than Los Angeles. In estimating the costs, they factored in losses in crop revenue and higher costs for pumping more groundwater.