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I assume the problem is that the agricultural usages divert water that is running into the lake, so it dries up.

As others have said, the problem is the lake drying up from lack of incoming water.

The consequences of the lake drying up is the end of the "lake effect" cycle, the arsenic in the dried lakebed being released into the air, etc

The Salt Lake is fed by other rivers and tributaries, which are currently being used as sources of freshwater by farmers and towns.

The concern is that the farmers and towns are using the water before it can get to the Salt Lake.

You're right. Agriculture is taking water from the freshwater streams that would otherwise replace what evaporates from the lake.

It's fresh water before it gets to the lake.