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Tulare County farmers face financial strain as water costs surge

Water costs on farms in Tulare County, California, have escalated to approximately $1,500 per acre due to pumping restrictions imposed by the Sustainable Groundwater Management Act (SGMA). This law adopted a decade ago amid controversy, is now being implemented, raising concerns among farmers about potential bankruptcies.

Growers like Sahota, who farms with his father in eastern Tulare County, face financial instability with over $15 million in outstanding loans. The value of his orchards has decreased to a quarter of their worth from four years ago. "How are we going to pay the loans? It's impossible," said Sahota, highlighting the challenges faced by farmers in the San Joaquin Valley, where agriculture is a primary employer.

The value of orchards relying solely on groundwater has decreased by 30% to 40%, according to Janie Gatzman of the American Society of Farm Managers and Rural Appraisers. This trend could lead to transformations in the San Joaquin Valley, a crucial region for California's agricultural output.

Farms in "white areas," which depend exclusively on groundwater, are most affected. Historically, these areas had abundant water, negating the need for imported water. However, counties like Madera, Fresno, Kern, and Merced now find imported water essential. According to Daniel Sumner, a professor at UC Davis, "You don't buy land by the acre. You buy it by the acre-foot" of water.

The Groundwater Act, passed in 2014, aims for sustainable groundwater use after years of over-pumping. Studies indicate that the region consumes twice the groundwater replenished by nature. Ground subsidence, exacerbated by the 2020-2022 drought, has caused infrastructural damage. Recovery will require several wet years and reduced pumping.

Local water agencies are tasked with achieving sustainability and setting caps on groundwater extraction. Farms with guaranteed water access will become more valuable, according to Andres Jauregui from CSU-Fresno. "You can't drop a well to solve your water problems," he said.

SGMA allows until 2040 for water basin balance, but immediate action is needed in subsidence areas. Water agencies employ demand reduction tactics, including water fees and pumping allocations, even requiring meters on agricultural wells. Farmers like Amrik Singh Basra face escalating groundwater fees, threatening their operations.

Eastern Tule Groundwater Sustainability Agency charges Sahota $330 per acre-foot, plus a $110 subsidence fee. His total costs could reach $3,000 per acre-foot. Despite efforts to manage debts, Sahota considers relinquishing his land. "People in the Bay Area want to get the fruits and vegetables on their tables, but it costs water," he said.

Small- and medium-scale growers are particularly vulnerable, with little assistance available, according to Clean Water Action and CivicWell. Many were unaware of the Groundwater Act's implications until after its enactment. "Where is this money supposed to come from?" asked Sahota.

Source: The Mercury News

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