California’s farms are the largest food producers in the nation, but ongoing drought conditions are wreaking havoc on this $50 billion sector.

Crop revenue losses, combined with groundwater over-pumping and upstream supply-chain impacts, may have slashed the state’s agricultural revenue as much as $1.7 billion in 2021, according to a new brief published by the Public Policy Institute of California.

Drought conditions last year also contributed to the loss of 14,600 related jobs, amounting to about 3 percent of a sector that employs more than 420,000 people, the authors stated.