I know the farmers that get their water from the Sacramento River don't have any hair left from their fight with the fish rights groups for years and now exacerbated by the drought. As my wife just mentioned, we haven't really noticed higher prices (not big meat/dairy consumers) during the winter as lots come from Mexico, etc. Summer will be the test, though. But I harken back to a weather forcaster that believes relief may come winter '14/'15 with El Nino. One of these days PHO will be the play I expect http://stockcharts.com/h-sc/ui?s=PHO&p=D&yr=3&mn=0&dy=0&id=p82392954769
I'm in California also (San Diego). Higher food prices are definitely possible but bigger concern is because we have had no rain at all here this winter, it will be so dry this summer that the wildfire season will be out of control. I think the entire Southern California area might just spontaneously combust at some point...