In the West, its not about price. There is not enough water for the growing population.
There isn't enough water in the west because its too cheap, esp for agricultural use.
mises.org
reason.com
"..."Free" or subsidized water is bound to be wasted, according to most experts. Why bother fixing the leaky faucet if that would cost more than you'd save? Why buy better irrigation technology if it won't save you money?
No reason. And that's why we hear so many suggestions that water users must pay the price. Easier said than done, in many cases. Sandra Postel, who has studied water policy for many years, observes, "Most water in developing countries, especially in agriculture, is not metered, and you can't charge for volume unless you have a way to measure it." She suggests that rationing or better technology could encourage more efficient use where water cannot be metered.
The subsidies are "most dramatic in irrigation," which accounts for about 70 percent of worldwide use, says Postel. "In most cases, farmers pay 10 percent to 15 percent of the real cost, or get it free." And because water subsidies usually go only to rich farmers, Postel says they are "not necessarily helpful from a conservation or equity standpoint."
Water subsidies are a fact of life in the western United States. According to de Villiers, they amount to $500 per acre. He alleges that "70 percent of the farmers' profits in California's Central Valley -- which is supposed to be the richest farmland in the world -- came directly through taxpayer subsidization..."
whyfiles.org
"...In 2002, the largest 10 percent of the farms received 67 percent of the water, for an average subsidy worth up to $349,000 each at market rates for replacement water, according to the study. Twenty-seven large farms each received subsidies each worth $1 million or more at market rates, compared to a median subsidy for all recipients of $7,076.
The report contends that one farm Woolf Enterprises of Huron, Fresno County--received more water by itself than 70 CVP water user districts, for a subsidy worth up to $4.2 million at market rates. Woolf Enterprises is a member of the huge Westlands Water District, a district that Craig Tucker of Friends of the River describes as the "Darth Vader of California water politics"
Other revelations of the report include:
* CVP farmers get about one fifth of all the water used in California, at rates that by any measure are far below market value
* In 2002, the average price for irrigation water from the CVP was less than 2 percent of what LA residents pay for drinking water, one tenth the estimated cost of replacement water supplies and about one eighth of what the public pays to buy its own water back to restore the San Francisco Bay and Delta..."
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