As Supplies Dry Up, Growers Pass on Farming and Sell Water

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The shortages this season among the most intense of the last decade are already shooting water prices skyward in many areas, and Los Angeles-area cities are begging for water and coaxing farmers to let their fields go to dust. "It just makes dollars and sense right now," said Bruce Rolen, a third-generation farmer in Northern California's lush Sacramento Valley. "There's more economic advantage to fallowing than raising a crop."

from the Press-Enterprise, Riverside CA

In a state where water has become an increasingly scarce commodity, a growing number of farmers are betting they can make more money selling their water supplies to thirsty cities and farms to the south than by growing crops.

The shortages this season among the most intense of the last decade are already shooting water prices skyward in many areas, and Los Angeles-area cities are begging for water and coaxing farmers to let their fields go to dust.

"It just makes dollars and sense right now," said Bruce Rolen, a third-generation farmer in Northern California's lush Sacramento Valley. "There's more economic advantage to fallowing than raising a crop."

Instead of sowing seeds in April, Rolen plans to leave his rice stubble for the birds and sell his irrigation water on the open market, where it could fetch up to three times the normal price.

"It's been a good decade since there's been this much interest in buying and selling water on the open market," said Jack King, national public affairs manager for the California Farm Bureau Federation. "We're prepared to see significant fallowing in several key parts of the state."

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Water from Northern California rivers irrigates most of the country's winter vegetables and keeps faucets flowing in the Los Angeles area. But it must be shipped south through a complex network of pumps, pipes and aqueducts, and that system recently developed a kink when a federal judge ordered new restrictions on pumping to save a threatened fish.

As Gov. Arnold Schwarzenegger and California legislators argue about how to solve the state's water crisis, the bottleneck has sent the demand for water soaring in cities and farming districts far to the south.

Residents of Long Beach can't run fountains, and it's now illegal for restaurants to serve customers a glass of water unless they ask for it.

Near Bakersfield, the shortages are expected to force some almond and pistachio growers to triage which of their nut trees should survive.

And cities across California are drawing down underground stashes meant to carry them through dry years just to avoid any new purchases.

Full Story:
http://www.pe.com/ap_news/California/CA_Water_Wars_324821...