The drought is here, and agriculture is scrambling.
Water regulators have cut the amount that can be taken from lakes, rivers and streams. Farmers who ordinarily get that water either have to forgo planting some of their fields, or pump water from the ground, or a combination of the two. Farmers dependent on wells are also affected.
The U.S. Supreme Court on Monday unanimously declined a petition by Imperial Valley farmer Michael Abatti claiming he and a handful of other agricultural landowners, not the Imperial Irrigation District, held senior rights to Colorado River water that nearly 40 million people across the West depend on.
The decision likely is the last stop for a torturous legal battle that dates back to 2013. As the law stands, farmers have a guaranteed right to water delivery but not a special claim above other users like homes and geothermal plants.
In America’s fruit and nut basket, water is now the most precious crop of all.
It explains why, amid a historic drought parching much of the American West, a grower of premium sushi rice has concluded that it makes better business sense to sell the water he would have used to grow rice than to actually grow rice. Or why a melon farmer has left a third of his fields fallow. Or why a large landholder farther south is thinking of planting a solar array on his fields rather than the thirsty almonds that delivered steady profit for years.
Former bond trader Alan Boyce is just the type of California farmer expected to dive into the world’s first water futures contract.
Boyce is comfortable navigating financial tools, and he grows irrigated pistachios, tomatoes, alfalfa and other crops in California’s drought-prone Central Valley. But he says the water contract is still too illiquid to benefit him.
Financial exchange operator CME Group launched the contract late last year to help big California water users such as farmers and utilities hedge rising drought risk and give investors a sense of how scarce water is at any given time. The exchange and a United Nations report said this is the first water futures contract in the world.
As farmers on the west side of the San Joaquin Valley struggle to irrigate crops and weather an ever-worsening historic drought, a bit of relief could be on the horizon courtesy of farmers in the north Valley.
But it could be all for naught if Federal water managers don’t sign-off.
What’s at stake? A proposed transfer of 100,000 acre-feet of water from the Southern San Joaquin Irrigation District (SSJID) and Oakdale Irrigation District to farmers utilizing water from the San Luis & Delta-Mendota Water Authority.
On June 17, the Santa Fe Irrigation District board approved the adoption of a program that will benefit the district’s agricultural water users.
SFID will now allow eligible customers to participate in the San Diego County Water Authority’s Permanent Special Agricultural Water Rate (PSAWR), a program that SFID Director Sandra Johnson said recognizes the value of agriculture by reducing water rates for growers.
While California is known for its world-famous entertainment industry and ever-transforming tech sector, agriculture is the often-overlooked backbone of our diverse state and one of its earliest economic engines.
Our state’s multigenerational farmers and ranchers not only feed Californians, but also supply one-third of our country’s vegetables and two-thirds of its fruits and nuts, while also leading the nation in milk production.
Farmers on the western edge of the parched San Joaquin Valley have little or no ground water resources this year. The South San Joaquin Irrigation District and Oakdale Irrigation District have legal rights to 200,000 acre feet of water sitting behind New Melones Reservoir beyond this year’s needs of the farms and urban customers they serve. The two districts want to help the farmers who will face a difficult choice: Let tens of thousands of acres of productive orchards die and leave cropland fallow or else accelerate groundwater pumping to exacerbate dropping aquifers the State of California has identified as a pressing issue.
Growers are dealing with severe cutbacks in the surface water deliveries they normally receive from reservoirs.
The lack of steady irrigation has already impacted spring cropping decisions made by farmers.
As much as 100,000 acre-feet of water — enough to meet the annual demand of more than 40,000 Tuolumne County residents for at least five years — that’s currently stored in New Melones Reservoir could soon be sent south to aid drought-stricken farmers under an agreement between the Oakdale and South San Joaquin irrigation districts.
On Wednesday, the districts announced their respective boards had approved the proposal that would benefit agricultural contractors on the west side of the San Joaquin Valley who’ve been cut off from their typical annual water supplies through the federal Central Valley Project due to the drought conditions.
