Water
Competition for surface supply and rising pumping expenses are driving up irrigation costs and limiting availability, potentially threatening economic viability for some farmers and ranchers.
Water supply may become the most limiting factor in agriculture in the future. While supplies are adequate for current demand, increased demand for urban uses and habitat could affect future deliveries for agriculture, even in areas where current supply is good, such as Yuba and Sutter counties. Another supply issue is lack of infrastructure - canals and ditches - in some areas and the cost of building new infrastructure. In the absence of surface water, farmers and rancher only option is pumping; however, the cost of pumping is increasing and rising demand, falling aquifers and contaminated plumes only raise those costs and concerns about overdraft. Increased pumping also increases diesel fuel consumption and emissions. This is an especially daunting problem in the foothills of El Dorado, Placer, and Yuba counties, where groundwater is in short supply and fresh water needs in the Delta could someday challenge how much surface water is available in this region.
A recent federal court decision to reduce Delta water diversions has stalled the finalization of a flow standard for the American River, a key part of the Water Forum agreement. Furthermore, a new report by the Delta Vision Blue Ribbon Task Force recognizes that solutions for the Delta must reconsider upstream diversions from the watersheds that feed the Delta. The State is changing its perspective on how to manage the Delta, which could affect the availability of surface water supply in the Sacramento region.
Though it has never used its authority and circumstances would have to be extreme, the State Water Resources Control Board has the ability to exercise eminent domain over surface water if they determine such an action is needed to stabilize state water supply, particularly in the Delta. It is easy to see why water markets are getting more competitive; any periods of extended drought would only increase competition and exacerbate these issues.
