California Drought: Access to Water Proves Key Factor in Farmland Value

With drought adding new constraints on the state's water supplies and farmers and ranchers increasingly turning to groundwater to sustain food production, lawmakers now are contemplating bills requiring changes to how groundwater basins are managed. If adopted, opponents said, the bills have the potential to undermine food production, reduce agricultural land values and hamper the overall economy. Two pieces of legislation were each amended twice last week and now have identical language, requiring assessment of impacts on local ecosystems from groundwater pumping. The measures will be heard in their respective Appropriations Committees this week. The California Farm Bureau Federation and other agricultural and water organizations oppose both measures. Jack Rice, CFBF associate counsel, warned of unintended consequences from laws that are hastily passed and implemented. "Figuring out how to improve groundwater management in California requires figuring out the best possible solution for a highly complex problem," Rice said. "That doesn't mean throwing legislation together and passing it before people even have a chance to understand the implications of how a new groundwater management framework will operate. Poorly conceived and executed changes to groundwater management would be very disruptive." Among the issues hanging in the balance, he said, are farm and ranch land values, which depend on property rights for access to groundwater supplies, particularly when surface water supplies are unreliable due to drought, plus regulatory and water-system constraints...more