California Water Prices Soar for Farmers as Drought Grows [View all]

[jakeXT]

Farmers in California’s Central Valley, the world’s most productive agricultural region, are paying as much as 10 times more for water than they did before the state’s record drought cut supply.

Costs have soared to $1,100 per acre-foot from about $140 a year ago in the Fresno-based Westlands Water District, which represents 700 farms, said Gayle Holman, a spokeswoman. North of Sacramento, the Western Canal Water District is selling it for double the usual price: $500 per acre-foot, about 326,000 gallons (1.2 million liters).

“This year the demand was great, the competition was high,” said Ted Trimble, general manager of Western Canal, which represents rice farmers. “You have huge demand in the southern end of the state.”

The drought gripping the state that supplies half the fruits, vegetables and nuts consumed in the U.S. has led federal and state providers to curtail the water they distribute to California’s farmers. That’s prompted districts representing growers to buy and sell for escalated prices from other parts of the state as thousands of acres go unplanted.

http://www.bloomberg.com/news/2014-07-24/california-water-prices-soar-for-farmers-as-drought-grows.html