This is overly simplified to the point of being wrong.
Water usage spent on watering crops used to then raise livestock (eg. alfalfa, soy) account for some 70% or more of total water usage in regions where this type of farming is done.
In arid regions (MENA, Saudi Arabia, Iran, California etc), a lot of that water is aquifer water. Aquifers take centuries, sometimes millennia to fill up.
The consequences of emptying these are rivers drying up, native flora dying off, topsoil being eroded and so on. In some cases, Tehran and Mexico City being prime examples, the depletion is sufficient to cause structural changes in the ground leading to literal collapses of land.
Growing food with an order of magnitude less inefficiencies means an order of magnitude less of these consequences.