Economic Impact of Reduced Surface Water Deliveries in the Central Valley Project

Client: Friant Water Users Authority

Location: Lindsay, CA

Summary: The Friant Water Users Authority hired Cardno ENTRIX to analyze the economic impact of permanently-reduced irrigation water supplies and increased groundwater pumping lifts on the agricultural and municipal sectors in the San Joaquin Valley of California. The team conducted interviews with growers and water district managers to obtain site specific farm and district?level data. This data was then used to develop a mathematical programming model to determine the costs to agricultural irrigators. Our study also assessed the least costly alternatives to substitute for reduced availability of water for crop production and potable use. Additionally, a regional economic model was constructed and used to estimate the total regional impacts of water reductions in terms of output, employment, and income. Adverse impacts increased dramatically over time as increasing amounts of cropland are taken out of production.