This isn't whats happening at all, at least in ag. There is a huge amount of deadweight loss to extremely wealthy long time ag landlords who own water rights. A

This isn't whats happening at all, at least in ag. There is a huge amount of deadweight loss to extremely wealthy long time ag landlords who own water rights. At this time, they have extremely inefficient water uses because water is costless to them. If water prices were to be raised, they would install various methods of water conservation (drip irrigation instead of flooding, etc) and maintain production levels, resulting in similar prices and availability for consumers.