SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: tejek who wrote (328949)3/15/2007 12:52:33 PM
From: TimF  Respond to of 1573242
 
The history tells you why the current system is in place, but it doesn't negate the fact that the current system provides a lot of subsidies that for both financial and environmental reasons aren't a good idea any more, if they ever where a good idea.

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."

Hopefully that will be an opportunity that will be take advantage of. I suspect prices will rise, but I also suspect that the current users of the water have enough political clout to make sure that they still pay a lot less than the market rates.

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.

Its not just San Joaquin, that's just one large example.

As for exports. Its easy to export things if you charge people less than the real cost of production, but you don't benefit by providing such exports. If the vegetable growers are, or can be, efficient enough to have low enough costs, that they can still have a big chunk of this export market when they aren't subsidized, then great. If they can't than there isn't much point in having the exports.

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.

I agree. There is less of it per square mile, and in many cases less per person, than in the east, and people are more used to having it politically allocated, rather then just paying more for it. So if demand goes up (as it has been) or if supply goes down (and it might) you just get more intense political battles, in addition to, or instead of higher prices.