Will the Costs of Fixing the Delta Impact the Cost of Food?

Mike WadeAgricultural Water Management

Council

Irrigation System Investments

From 2003 through 2010 San Joaquin Valley farmers invested over $2.1 billion upgrading irrigation systems on 1.8 million acres.

Drip irrigation does NOT directly save water, however it improves distribution uniformity and can generate more vigorous plant growth and increased crop production.

Switching to drip can INCREASE consumptive water use by 15 percent, which can lead to increased crop production by as much as 30 to 50 percent.

Indicators of ImprovedWater Use Efficiency

Comparing 1960 to 2003, crop production (tonnage) more than doubled while applied water, over time, increased then returned to previous levels. (California Farm Bureau, DWR, USDA)

From 1967 to 2007 the value of agricultural crops in California rose 84 percent in 2007 dollars. (DWR)Crop production and economic value are influenced by many factors other than simply efficient water management, including soil type, weather, pests, fertilization practices, trade policies and competition. Measuring water use efficiency through production volume or economic value is not appropriate at scales lower than the county or State level.

Westlands Water District - 2006

Westlands Water District - 2009

Westlands Water District

Westlands Water District

Consumer Impacts

Americans spend 6.2 percent of disposable income on food and non-alcoholic beverages compared to 10.2 percent in 28 other high income countries.

At the same 10.2 percent rate, food costs for American families would rise $3,820 per year.

(Cardno-Entrix)

“Avoiding a 20% reduction in baseline supplies due to regulatory restrictions is estimated at $9 billion for urban agencies through 2050 and $2.7 billion for agricultural agencies, for a total of $11.6 billion.

The consequences of losing 1 million acre-feet are greater than gaining 1 million acre-feet.”

Dr. David Sunding, U.C. Berkeley

BDCP Economics Study

Will the costs of fixing the Delta impact the cost of food?

Farmers will grow the most valuable crop possible based on water costs and market conditions.

The cost of fixing the Delta will likely change the crop mix in the areas dependent on Delta exports.

Consumers will face higher food costs and potentially fewer affordable fresh produce choices if we DON’T fix the Delta.

The market may respond by shifting to greater dependence on foreign-produced fresh fruits and vegetables.

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