Lake Mead's level has been dropping under drought conditions since 2000. (David Tarboton photo)
After intense negotiations, states along the Colorado River reached a groundbreaking agreement in May to reduce water consumption by 3 million acre-feet over the next three years. Farmers — who use more than 80% of the river’s water — will be paid not to farm as part of the deal.
The plan seeks to reduce the states’ collective water usage through three-year financial incentives. Once it ends in 2026, officials will be having conversations about how to continue water conservation efforts.
Of the 3 million acre-foot reduction, roughly 2.3 million acre-feet in planned conservation savings will be compensated through funding from the Inflation Reduction Act. The deal offers various amounts of money, but the most common price is $400 per acre-foot of water saved.
“Although some farmers would like more, there are many farmers that think it’s a pretty good deal,” said Robert Glennon, a water policy expert at the University of Arizona law school. “It all depends on the situation of the individual farmer for what else they are growing.”
FOR FALLOWING
Farm operations with substantial land and water rights are already looking for ways to cash in on fallowing their land. One of those companies is Limoneira, one of the largest lemon producers in North America.
On a conference call in September, President and CEO Harold Edward said the company expects to receive $1.3 million annually paid in quarterly installments for fallowing 581 of its 1,300 acres in Yuma, Arizona.
“We are finding great monetization opportunities for our water assets by either fallowing acreage, leasing pumping rights, or selling the water rights for significant appreciation over our investments,” Edward said. “We believe this water monetization in Yuma, Arizona, is just the beginning of additional future opportunities for our abundant water assets.”
AGAINST FALLOWING
Smaller farmers, however, remain fiercely opposed to fallowing and believe they should be compensated at higher levels to take their land out of production.
Save the River, a group of farmers and agribusiness leaders initially asked for $1,500 per acre-foot to help cover increased costs of producing crops and to avoid a destructive food shortage.
Members explained that it would allow them to avoid a national food crisis, maximize participation, pay for technology improvements, retain employees, and stabilize agriculture-dependent communities.
“When the government comes crawling for your water, you get afraid. If you don’t have the water, then you don’t have a livelihood,” Glennon said. “That being said, farmers consume 80% of the West’s water and I think farmers in the future are going to use less water. The question is how do they get there?”
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