Alfalfa doesn't feed people [1]. It feeds cows that feed people. And nobody is going to starve because almonds and pistachios are pricier.
Moreover, California's agriculture is notoriously water inefficient [2]. Why wouldn't it be? What other behavior would you expect from agricultural multinationals for whom we've effectively zero rated a commodity input?
[1] https://www.pressdemocrat.com/article/specialsections/these-...
[2] https://calmatters.org/multimedia/2021/09/california-crops-d...