Last month, as Amrik Singh Basra wrapped up his almond harvest in Madera County, California, he faced a daunting ultimatum from his bank: pay the outstanding debts or forfeit his farm. Basra, who immigrated from India in 1980 and transitioned from trucking to farming, has cultivated almonds on his land, part of the San Joaquin Valley's "white areas" that lack surface water access and rely on groundwater.
The San Joaquin Valley, a powerhouse in producing fruits and nuts, has seen its groundwater aquifers depleted due to decades of unchecked pumping. The Sustainable Groundwater Management Act (SGMA), enacted in 2014, aims to stabilize these aquifers by 2040, potentially sidelining up to 20% of the valley's farmland. The act requires local groundwater agencies to curtail overdrafts, impacting farmers like Basra who have seen their water allocations shrink significantly.
Basra's struggle underscores a broader crisis in the valley, where water restrictions have already forced some farmers to reduce crop sizes or face penalties for over-pumping. Between 2017 and 2021, Basra borrowed $3.5 million for farm improvements, including drilling new wells—a decision made under the incorrect belief that SGMA would prohibit new wells. Now, with his groundwater allocation dwindling, Basra's farm value has plummeted, pushing him toward bankruptcy.
The situation mirrors broader trends across the San Joaquin Valley, where land values have sharply declined in response to SGMA's implementation and the resultant water restrictions. This decline has been particularly acute in areas reliant on well water, with properties losing up to half their value in some cases. State intervention in enforcing SGMA has added a new layer of risk, making farmland in affected areas less attractive to buyers and investors.
SGMA's economic toll extends beyond individual farmers, threatening the viability of the valley's agriculture-dependent communities. Despite state-funded programs to mitigate impacts, such as paying farmers to fallow land, the scale of the challenge has overwhelmed available resources. The act's focus on physical criteria for groundwater management, without considering economic consequences, has left many in the agricultural sector facing uncertain futures.
As the deadline for achieving groundwater sustainability approaches, farmers in the San Joaquin Valley are grappling with the reality of reduced water allocations and the need to adapt quickly. The story of Basra and others in similar situations highlights the complex balance between environmental sustainability and economic viability in one of America's most productive agricultural regions.
Source: Westside Connect
Source: Maven's Notebook