Posted August 15, 2013Farm groups in Arizona oppose an Arizona Department of Water Resources rule modification that would gradually eliminate extinguishment credits held by farmers, according to the Arizona City Independent. Extinguishment credits or groundwater credits “may be sold by farmers in full or in part when farmland is retired and used by buyers, usually developers, within the same management area.”
Under the modified rule, growers may continue farming,
but their credit allocations “begin to drop next year, from 100 to 94 percent
of the original amount. Ten years from
now, the credits drop to 64 percent and by 2054, they hit zero.”
The Arizona Department of Water Resources (ADWR) says
that “long-term” viability of area water supplies and protecting the area’s aquifer
from over-pumping were concerns that prompted the modified rule. ADWR’s plan to “gradually zero-out
extinguishment credits was devised several years ago” and implementation of the
plan was delayed in part “because of economic conditions.” An ADWR fact sheet states that if
“groundwater use were to continue at rates exceeding natural recharge from
rainfall and streambed infiltration, water levels could drop to levels that
would make it economically infeasible to continue farming.” The Arizona City Independent Article is
available here.
Arizona farm groups oppose the modified rule, set to
take effect on Jan. 1, according to Coolidge Examiner. A group of Pinal County farmers hope to
repeal or modify the ADWR plan before Jan. 1.
Groups opposing the plan are concerned that farmland value will drop as
the credits are reduced, causing many farmers to sell quickly. The Coolidge Examiner article is available here.
