Caps on groundwater use create a new market in California

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California lawmakers aim to bring groundwater use to sustainable levels by the early 2040s

of highway running between Los Angeles and San Francisco separates the dry hills to the west from the green plains of the San Joaquin Valley to the east, where much of America’s fruit, nuts and vegetables are grown. Every couple of miles billboards hint at the looming threat to the valley. “Is growing food a waste of water?” one billboard asks. Another simply says, “No Water, no Jobs”.

In the San Joaquin Valley agriculture accounts for 18% of jobs and agriculture runs on water. Most of it comes from local rivers and rainfall, some is imported from the river deltas upstate, and the rest is pumped out of groundwater basins. During the drought of 2012-16 landowners pumped more and more groundwater to compensate for the lack of rain. Thousands of wells ran dry.

The Public Policy Institute of California , a think-tank, estimates that this could result in as much as 15% of the valley’s 5.2m acres of irrigated cropland lying fallow. At first glance, each farmer seems to be faced with a choice: let land go fallow or grow crops which use less water.

Given the potential benefits of a market-based approach, non-profits such as the Environmental Defence Fund, the Fresh Water Trust and the Nature Conservancy have stepped in to advise thes on how to set up markets around California. Mr Terry’s wells, like others in Ventura, are equipped with meters, which send data to an online platform. The local water manager can check that everyone has complied with their respective cap. Participants who want to buy additional water can place a bid online.

Allocating pumping rights is the hardest part. Californian law allows landowners to use the groundwater under their property. But since a water basin connects all landowners underground, it suffers from the tragedy of the commons. When users cannot agree how to allocate quotas, courts will have to settle the dispute. Mr Terry and the market pioneers in Ventura County are trying to avoid this.

 

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Calif lawmakers aim to bring groundwater use to sustainable In drought water scarcity is jacking up water price in Oz Farmers can not afford to buy water The market went crazy many traders making $-mils but farmers can not afford it

It will be late.. there and in any other place

May be a touch late.

Oh good. A short 20 years from now.

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