When water is scarce: Ground water is key to easing impact of drought

In contrast to projections that drought-related farm losses could climb to several billion dollars this year, a UC model predicts actual losses will be $647 million - largely due to the cushioning effect of a projected 70% increase in ground water pumping. The most significant economic impact will be felt in the South San Joaquin Valley, and along the Coast. Consumers will pay $220 million more for produce at the farm gate-an amount that may be magnified two or three times at the retail market.

On page 6, the author and a colleague outline a scenario for ground water banking. They propose incentives to encourage ground water “savings” during wet and normal years — deposits to a “water bank account” which can be withdrawn in droughts