To: TimF who wrote (328599 ) 3/14/2007 11:56:12 PM From: tejek Read Replies (1) | Respond to of 1573216 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. Incredibly astute comments if you ignore the history that led to the current water allocation system. Believe it or not, there was time when the US was trying to get people to move out to the West and to develop it. One way of doing that was providing cheap water in contracts throught the Bureau of Land Reclamation. As those contracts turnover, the rates are raised. I believe all the contracts will be renewed by 2008: "Conditions in California's Central Valley illustrate both the success and the problems associated with the development of large-scale water projects by the Bureau of Reclamation. California's agricultural and urban economies are fueled by water imported from northern California. As in many other arid states, the location of demand for water does not coincide with supplies: 75 percent of water use in California occurs south of Sacramento, but 75 percent of water supplies are north of the city. Nearly 60 percent of the surface water used in California originates in the Central Valley rivers, and half of that is controlled by the Bureau of Reclamation in its Central Valley Project. ****************************** "Prices of CVP Irrigation Water. The Bureau of Reclamation's water supply policies, described in Chapter 2, combine with California's state water laws to create the particular set of conditions in the CVP. CVP water contractors are parties to renewable 40-year water service contracts that provide for the delivery of water but not necessarily for having the contractors repay the bureau for their share of the cost of the project by the end of the contract term. More than 200 entities contract with the bureau for water deliveries. The first of the original contracts expired in 1989, more than one-third have already expired, and nearly all will be up for renewal by 2008. Contract renewal presents the best opportunity to modify water prices." cbo.gov As for sheep operations, they have declined significantly in the West over the last 100 years. The sheep farm in the article must be a hold out.....most sheep farming is now done in the more northern states of the West where water is not so dear, and not California:"Large sheep operations which own 80 percent of the sheep, are located primarily in the Western states (see table below). Small producers, those owning less than 100 head of sheep, comprise the majority of sheep operations, but own only 17 percent of the sheep. Over the past 200 years, the U.S. sheep population has come full circle. From 7 million head in the early 1800's, sheep numbers peaked at 56 million head in 1945, then declined to less than 7 million head on January 1, 2003. At the same time, industry emphasis switched from wool to meat production. Sheep numbers increased slightly in 2005 and 2006, the first time since 1990. sheep101.info Before you condemn the San Joaquin Vally for its water use, its important to note that the SJ Valley provides important export monies for the US that help in its balance of trade with other countries. Because of its mild climate, a number of vegetables and fruits generate two crops. Fruits and vegetables are shipped to South America during the CA summer when large portions of that southern continent are experiencing winter. Having said all that, water is precious in the West. It would not surprise me to see some serious fights over water break out between the states in the arid Southwest.