Develop tech to make alternate feed cheaper without dropping milk production or quality compared to alfalfa.
Improve water distribution in soil (I think there is a way to optimize this, varying by soil type and many other factors, that would minimize runoff). Or, get easier systems to recycle runoff. Ideally something with no/few moving or manufactured parts.
Reduce the cost of desalination plants and create a more realtime water market. Having one single water market would be a fundamentally technical task (albeit a complex one), but would level out prices, removing the incentive to make the policy mistakes.