Water supplies are dwindling in California as the state’s historic drought drags on this summer. So, farmers in the state’s multi-billion dollar agricultural industry are looking for water below ground instead. Groundwater is being pumped at record rates, and some of it is being sold for record prices.
In a good year, California’s farmers get most of their water from the state’s vast network of rivers and reservoirs. But in a drought, groundwater makes up 60 percent of the state’s supply. It’s a lot like an underground reservoir – and it’s drying up in many places.
“When the water is gone, all the farming is gone,” says Billy Grissom, a Central Valley farmer and rancher who lined up to speak about groundwater at a recent Merced County public meeting.
Many farmers in the region are relying on groundwater from wells on their land this year. When that happens, the groundwater levels drop, much like having too many straws in the same glass. So Grissom has had to deepen his wells.
“I had to add 40 feet,” he says. “I have the bill right here from Shannon Pump.”
Grissom is one of the lucky ones. It’s tough to get an appointment with companies that drill water wells because they’re booked up for months.
“A lot of people’s wells are going dry,” says Merced County supervisor Deidre Kelsey. “We are over-drafting the groundwater, and it is agriculture.”
Groundwater pumping doesn’t have to be publicly reported in California. There’s virtually no regulation of it, unlike in other western states. So, often, farmers don’t know how much their neighbors are taking until the water starts drying up.
At this public meeting, county supervisors are hearing about a case that’s on the record because the groundwater is being sold.
“This is common practice,” says Steve Sloan, one of two ranchers looking to sell up to 4 billion gallons of groundwater. Under California law, he owns the groundwater under his property. On today’s water market, it could make him millions.
“Water exchanges, water transfers have been done for over 30 years,” he says. “This is how we survive collectively as an ag industry in California.”
The water will be sent 50 miles away to a water district on the other side of the Central Valley. Farmers there are in even worse shape – they are looking at ripping out almond orchards, says local water manager Anthea Hansen.
“We’re in crisis mode,” says Hansen. “I have trees I need to keep alive. We don’t need large quantities of water to do that. “
Hansen is trying hard to make her case at this public meeting, but many farmers in the region don’t want to see water flowing elsewhere.
“What’s going to happen when you take this much water out of an aquifer?” asks Mike Gallo, a neighbor of Sloan’s. “We’re on the same aquifer. I don’t know what it’s going to do. Nobody knows what it’s going to do.”
The federal referee in the sale is the Bureau of Reclamation and the agency has approved it. Under current law, there’s little that local county officials can do.
In the big picture, water sales can help even out the economic impacts of the drought, according to experts.
“One of the ways to deal with shortages is to let water start moving, let the markets start moving water and that actually increases your economic efficiency,” says Jeff Mount, a geologist and senior fellow at the Public Policy Institute of California.
But there are caveats. Groundwater is being dramatically over pumped in many parts of the Central Valley.
“You also have to do it in ways that don’t harm other parties,” says Mount. “And if you start drying up your neighbors’ wells to sell water to somebody else, then you are causing harm.”
Some counties have taken matters into their own hands and effectively banned the sale of groundwater outside county lines.
California lawmakers are looking at regulating groundwater for the first time. Two bills are being considered in this legislative session and would have to pass by the end of August.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.