If that means I can't afford California's products, I'll choose another product. None of the things that California grows are necessary staples.
Apparently you missed the fact that California produces over half the fruits and vegetables consumed in the US. We're not talking about almonds, cotton and some of the other troublesome crops.
If that means the farmers aren't competitive any more, then they should choose a line of work whose profitability doesn't depend on government largess and piping in water from god knows where.
Actually those "staple" crops you refer to from the central regions of the US are going to need to import water too. Much of the central US has the *exact* same problem as California. Extremely fertile land but a shortage of surface water. The central US has been able to mine water from ancient aquifers that are not being refilled, they too will have to import water as mining becomes more and more difficult.
It's nonsense really. You don't subsidize a limited, necessary resource.
You don't seem to understand what the most critical resource for farming is. It is the land, fertile soil. Framers have been settling on fertile soil and moving water to that soil for over 5,000 years. California has an extra benefit due to a climate that allows production year round.
You let the supply demand curve determine the optimum price, and then if poor people can't afford to get drinking water, you subsidize them directly. Not to mention, when the price of water reaches its natural level, new sources like desalinization become economically feasible.
The problem in CA is not really price. That is something very annoying but water is fairly cheap for everyone, its just that some farmers get it ridiculously cheap. The real problem is that some farmers have very old federal and state licenses to get large amounts of water and many of the irrigation techniques are still quite wasteful. Its more of a shortage problem than a price problem.
I realize you are all caught up with your econ 101 price and demand curves but recall that all important caveat that your professor qualified everything with: all other things being equal. In reality today all other things are *not* equal which is why your econ 101 will not work.