As California’s severe drought limits the flow of water to cities and farms, the price for H2O is skyrocketing.
Bloomberg reports the price for an acre-foot of water rose to $1,144.14 an acre-foot on the Nasdaq Veles California Water Index in late June. That’s a hike of 56% since the start of 2022.
In addition, Westlands growers are paying about $2,000 an acre-foot on the open market, according to Sarah Woolf, a former Westlands Water District board member who is president of Water Wise, a water brokerage and consultancy based in Fresno.
Drought Endangers Farming’s Future
SJV Water reporter Lois Henry reported in April that one ag water sale in the Panoche Water District on the west side of the San Joaquin Valley hit the eye-popping price of $2,000 an acre-foot.
Some growers are willing to pay that much, it was explained, to see a crop survive and go to market. But even with high crop prices, $2,000 an acre-foot doesn’t pencil out over the long haul for farmers.
“From the agriculture front it’s just not sustainable,” she said. “I don’t know of a crop that can carry water prices like that.”
Read more at this Bloomberg link.