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The governor’s budget proposal for the next fiscal year offers an additional $750 million for drought response, building on the $880 million being allocated as the second half of a two-year drought package.
Of the $200 million for water conservation efforts within the package, just $20 million would focus on agricultural water use efficiency through a CDFA grant program. The Legislative Analyst’s Office (LAO) pointed to an older statistic estimating that agriculture accounts for 80% of human water use, compared to 20% for urban water use.
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“The state might achieve more impact on its overall state water supply—in terms of demand reduction or increased supply—by targeting its efforts on the agricultural sector,” the analysts note in the report to the Legislature.
LAO also suggested lawmakers spend more than the “relatively modest” $30 million proposed for groundwater recharge, since it can add to the overall supply and provide flood protection benefits.
Brad Hooker
Associate Editor, Agri-Pulse West
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This week’s Open Mic guest is Rep. Cindy Axne, D-Iowa. The two-term representative is a 5th generation Iowan with an affinity for agriculture and rural subjects. Axne says supply chain issues are an issue for farmers approaching planting season with some crop decisions based more on supply availability than market fundamentals. She’s calling on the Biden administration to take steps to reduce tariffs on imported fertilizer and increase production and use of domestic energy supplies. Axne supports efforts to address cattle price discovery and says her first priority is her own constituents. She has lobbied the Biden EPA on both renewable fuel use as well as the effort to define the jurisdiction of the Clean Water Act on the nation’s land and tributaries.
The Federal Reserve announced an increase to interest rates this week in an effort to soften the blow of inflation on the economy. This we talk to Farm Credit Council’s Todd Van Hoose about the impacts the rate hike – and more planned increases in the future – will have on the farm economy. There’s also a panel discussion on the current state of the farm economy and what a leading panel of experts are watching for indicators on the future of the sector’s financial status and how current factors are impacting the industry. Want to receive Newsmakers direct to your inbox every week? Sign up!
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