I live on a small orchard in Chico. We are pretty well endowed with ground water, but the climate is arid except for a rainy season between September and May. The land is as fertile as anywhere in the world, but without water, its major agricultural use would be for winter graizing. The state is moving toward making groundwater into a commodity. Sellers in the North of the state can contract to sell to buyers in the South. The problem is that when a large property owner sells groundwater, he sells groundwater from the entire acquifer. So if a larger owner sells, "his" water, he is really selling "mine", but I have no recourse. At the same time, the price of commodity-water will rise. Of course, water in California is underpriced for farmers, due to massive subsidies whereby the state and federal government provide very inexpensive water to farmers, who then have programs to help them dump and divert produce, lest the price fall too low. Urban dwellers, including the affluent, pay far more than the farmers. For most people the California, of course, water costs are trivial. However, we are moving toward massive water shortages in the West. Already, the Bass brothers are buying up farmland, not to farm, but just to sell the water. The whole system is scandalous, although it is not as painful as the situation Patrick Bond describes. Still, it is probably as inequitable. Chinatown was a great film, no? -- Michael Perelman Economics Department California State University [EMAIL PROTECTED] Chico, CA 95929 530-898-5321 fax 530-898-5901
