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This is what happens when people stop thinking about environmental impact and just focus on what's easy. You already have the people, the infrastructure, and experience in California. From that standpoint you'd be crazy NOT to start your new crop in California. However, it means you're going to be throwing money at your landscape constantly to get it to and keep it at a point where it can support your crop.

Farm rice, almonds, etc where there's more water, like Louisiana or something. It would probably not cost any more money than what you've already spent to terraform the area appropriately and train people.