In a strictly capitalist sense yes, but then by that argument we should just completely cut off all California farmers since they seem to make less money per water used when compared to California cities (I'm just stating your argument, which I would argue is "dumb" and overly simplistic way of looking at the world).
You're missing the point that we are talking about regulating water usage external to the industry (in which people should and do care about water usage as it relates to sustainability of California as a whole), and water usage internal to the industry (in which an individual farmer cares about yields, efficiency, and economic value of crops).
Internal to farming the entire reason we have so many almonds in CA is exactly because it's a high-efficiency and high-value crop.
https://slate.com/business/2015/04/almonds-in-california-the...
"In a real sense, the almond industry is the future of California agriculture—high value, high efficiency, but still high consuming. That’s not necessarily a bad thing, as it makes most sense to use a scarce resource for the highest value application possible."