Confederated Tribes of the Grand Ronde Community of Oregon
K ern County Water Agency
North Kern Water Storage District
San Joaquin Valley Agriculture Industry
FRIANT WATER USERS AUTHORITY:
Friant Water Users Authority Hires NEA for Agricultural
Economics Project
"NEA utilized the agricultural economics skills of its staff to accurately measure the true impacts on the Friant Water Users Authority of declines in surface water supplies. The study was critical in demonstrating to legislators, regulators and the general public the true value of our family farm-based agriculture to the entire San Joaquin Valley."
Richard Moss, Manager (at time of study)
Friant Water Users Authority
Project Highlights
Friant Water Users Authority retained NEA to analyze the
local and regional economic impacts of reduced surface water deliveries to
the agency’s service area under the Central Valley Project Improvement
Act (CVPIA). The effects on cropping patterns, irrigation technologies, and
idle acreage were analyzed using an optimization model. Annual reductions
of 200,000 acre-feet (AF) and 500,000 AF, representing about 10 percent and
25 percent of contracted amounts, were evaluated. The 200,000 AF annual reduction
was found to cause the idling of 173,000 acres of cropland, and a 500,000
AF annual reduction would cause the idling of 372,000 acres. Annual agricultural
revenues were found to decline by as much as $180 million and $383 million,
for the two reduction alternatives, respectively.
An input-output model, developed with IMPLAN data and software, was used to analyze the regional impacts of the two alternatives. For the 200,000 AF reduction, it was found that regional personal income would fall by $75 million annually by the seventh year, while employment would be reduced by more than 2,000 jobs. For the 500,000 AF reduction, regional personal income would fall by $129 million annually by the seventh year, while employment would be reduced by more than 3,500 jobs.
The Authority funded the work in order to validate the results of another study. NEA modified the optimization model used in that study to focus on the intricacies of declining groundwater levels and their impacts over time.
For more information about NEA, or to discuss your specific project needs with an NEA professional, please contact us.
