California Cuts Farmers’ Share of Scant Water
nytimes.com
nytimes.com
I'm sympathetic to the individual farmers, of course, but the solution is not to allow these unsustainable practices to continue. We should charge market rates for every drop of water, and let welfare take care of the farmers who can't profitably pay those rates. If our welfare isn't enough for them, then it's not enough for anyone else and we should increase it. Ironically, rural California keeps voting against that.
Will that result in a lot of litigation? Sure. But the state has a lot of leverage on its side to push for a better result.
There has to be a way for California's current government to fix its old mistakes. The government could tax water per gallon, or impose steep property taxes on water rights. Both would solve the problem and side-step any Constitutional takings claims by farmers.
Do we really want more growth in the cities where water is scarce?
Reply to post below me : So, there is no issue. Best of luck.
Edit: My solution is for the people wanting water rights need to purchase them from those that have them (i.e. the agricultural folks).
"Buy more at market rate" means nothing if there is no water that's actually deliverable. Now that reservoirs are running dry, that's exactly what's starting to happen.
The central valley in California is not a desert. It has never been a desert. You seem to be confusing it with Southern California. Central California naturally contained one of the largest groundwater basins in the US, large rivers and lakes. For a couple million years, the whole thing was a giant lake for goodness sakes.
It is an agricultural area whose output and scale dwarfs anything else on Earth because it has both ideal growing weather, exceptional soil and normally more than enough water and because we have a drought once every 50 to 100 years, it all of a sudden unsustainable?
Where do you think we should grow crops? Eden?
The Central Valley has the largest area of Class I soil in the world. Don't know what that means? Look it up. The climate in the Central Valley is quite unique and perfect for growing a wide range of crops. Very few regions in the world have the characteristics of California's Central Valley.
This doesn't mean that water isn't a serious issue worthy of debate. But folks like you, whose knowledge of agriculture is clearly quite superficial, aren't adding anything to the debate. You conveniently ignore how important California agriculture is to our nation's food supply and seem to be willing to pretend that ag in California can just go away without consequence. In reality, it's not the farmers who stand to lose the most if a sustainable solution to this issue isn't found; it's the American people.
I'm not one to reflexively invoke the magic market fairy, but this is pretty much the textbook case of where markets are good at allocating scarce resources.
But, as we say in the water industry, Whisky's for Drinkin', Water's for fightin' over!
There are two basic concepts in environmental economics: positive and negative externalities. A positive externality is when someone benefits from something they don't pay for. Markets under-produce things that create positive externalities, because the price does not reflect that externalized benefit. You correct for positive externalities with subsidies.
A negative externality is when someone is harmed by something they do not get compensation for. Markets over-produce things that create negative externalities, because the price does not reflect that externalized cost. You correct for negative externalities with taxes.
Transportation infrastructure creates positive externalities. People benefit from a train line besides those who pay to ride it. Dams create negative externalities. The environment and people downstream are harmed by diversion of water, but they don't get compensated for that harm. Consumers buying produce is not a positive externality, because they pay for that produce. Water is an input to production, and the benefits accrue pretty much only to water users, or those who purchase a product or service from water users. If we stopped subsidizing water, the prices of California avocados would go up, but those prices would be efficient prices that correctly reflected the true cost of growing produce in a place with scarce water.
You'd be paying for these guys to do it less efficiently, or paying more to the other guy who farms it in the Midwest or S. America because he doesn't have the competition.
Even if the rain were not to come back and farming were to stop in California we got well over 100 years of incredible productivity out of it by bringing water in from regions that inherently could not be as productive. I would be surprised if we are not long past the breakeven point compared to not irrigating and trying to use that water in places with less favorable soil and climate.
I also think you should really research the cash flow of agriculture if you think welfare would even be a drop in the buckets towards the cost of running a modern farm.
The drought is made more difficult because we don't have enough water storage to sustain our full agricultural and urban water usage when it doesn't rain, but that isn't the root cause.
If we removed the smaller problem of lawns, and gave that water to the farmers, their water restrictions would not be as bad, which will have a direct result on their production, which has a direct result on food prices, which has a direct result on everybody, in particular lower incomes families.
So I really do stand by my statement that as long as people are watering their green lawns, we're not pursuing the optimal solution.
I should make myself clear, though - farmers don't get a free pass to use all the water they want. They should be pursuing more efficient irrigation methods, and plating foods that require less water. Then the cuts won't have as strong of an impact.
https://en.wikipedia.org/wiki/Carrot_and_stick
In other words if I invest in drip irrigation and cut my water use say 80% I not only don't receive help for doing it but I have the same water cut back percentage as my neighbor who is using water less efficiently.
And, let's start calling them what they are ... agribusinesses. "Farmers" are long gone from California's Central Valley.
Of course if 80% of the states water goes to farmers and you're 20% below normal, that means farmers have to be part of rationing. But do you really think there would be so much farming if we didn't have 20 million extra people here?
And farmers are not long gone from the Central Valley. Most farms are still family owned, they're just too large to be worked by one family. You can call it agribusiness if it makes you feel better to depersonalize them, but they're still farmers.
Urban water usage has remained steady at around 11% of the total despite population growth. Agricultural consumers use about 4x more water, and then export it out-of-state.
But all those people need to eat, so it's not like you can pretend twenty million people don't add to the demand for agricultural products.
Besides, if population was steady urban use would be 5.5%.
Those people need to eat, but it's not like 100% of the food grown in California is eaten in California, nor does California grow 100% of the food it consumes. California's growers are driven by the national food market, not the state food market.
If you’re forced to choose between the lesser of two evils, paying alfalfa farmers is where it’s at. Obviously better water management would be the sensible choice, but that hasn’t been on the table for decades.
This developed a problem as people were paid to not produce and when droughts happened, there was not enough food to go around - a critical failure for a civilization. A problem that is a relevant lesson today as politicians had used faulty economics to try to fix the problem.
Modern farm policy is wasteful, and deserves criticism, but it turned the problem on its head by subsidizing farmers to produce as much as possible. We've gone from occasionally starving to death to having medical problems from eating too much. A good problem to have.
That isn't really fair, there was a lot done. Desalination plants went up along the coast and rationing and conservation efforts went in to full-effect. The problem was that when the rainy season returned the desalination plants were spun down and people generally stopped caring as it was no longer an issue.