The state will spend $6.4 million dollars to retrain the workers.
Officials say around 1000 workers would be retrained for new careers.
State officials say unemployment has soared in California's farming communities to a level not seen since the Great Depression.
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Rice growers across the country can now move forward with a multi-million dollar settlement over genetically modified rice.
The company Bayer Cropscience says farmers filed enough claims to represent 85-percent of U.S. long-grain rice acreage.
That was the number required to make the deal binding.
Bayer has agreed to pay up to $750 million dollars to settle with U.S. farmers who grow long-grain rice.
The deal comes five years after the company introduced a genetically modified strain of long-grain rice into the U.S. market and hurt crop prices.