Seen on the AP wire:
Because farmers get their water at subsidized rates, some of them see financial opportunity this year in selling their allotments to Los Angeles and other desperately thirsty cities across Southern California, as well as to other farms.[...]
Environmental restrictions, booming demand for water, and persistent drought along the Colorado River have combined to create one of the worst water shortages in California in the past decade, and prices are shooting up in response.
The would-be water sellers include farmers who grow rice, cantaloupes and tomatoes around Sacramento and the San Joaquin Valley. Rice, in particular, requires a lot of water; the fields have to be flooded.
The farmers looking to buy water are generally farther south in the San Joaquin Valley and the Los Angeles area and grow such crops as pistachios, almonds and grapes. Because of the heavy capital investment they made in their trees and vines, these farmers cannot afford to stop irrigating their crops and let them die. In contrast, rice, melons and tomatoes are planted anew each year.
Of course, there’s no word on what the impact will be to our veggie and fruit prices in the upcoming year.
Now, what I’d really like to know is this: is it my imagination, or does something seem odd about subsidizing water for agribusiness when the recipients of those subsidies are finding it more profitable to sell away their water rights?