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US West drought pits farms against towns, industry in water scramble

Created at 15 Jul · 10:16 AM1 source↑ Market-relevant
IN SHORT

A severe drought in the US West is intensifying competition for water resources, pitting farmers against urban residents and industrial users. Critical reservoirs are at historic lows, forcing difficult decisions about water allocation.

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Key Numbers

40 millionpeople supplied by Colorado River system
1%San Carlos Reservoir capacity in Arizona
$21,000annual fee paid by an Arizona farmer for unavailable river water
250-acrealfalfa and cotton farm reliant on reservoir water
107 yearsfamily farming history in Pinal County, Arizona
70%Scottsdale's water sourced from Colorado River
250,000Scottsdale population
21%proposed annual reduction in Colorado River use by Lower Basin states
2028year through which proposed water use reductions are planned
three monthsearly snowmelt irrigation water ran out for a Colorado rancher
6%normal volume of Muddy Creek in Emery, Utah
330Emery, Utah population
six to nine monthsEmery, Utah's reservoir water supply duration

Who's Involved

Nancy Caywood
Arizona farmer facing water shortages
Jace Miller
Fifth-generation Arizona farmer impacted by drought
Michelle Ugenti-Rita
Scottsdale city council candidate and former state senator
Brad Udall
Colorado State University scientist specializing in water resources
Robbie LeValley
Colorado rancher affected by drought conditions
Jack Funk
Mayor of Emery, Utah, a town facing water scarcity
U.S. Bureau of Reclamation
Federal agency considering Colorado River water use reductions

↳ Why This Matters

The escalating water crisis in the Western U.S. threatens agricultural output, urban development, and industrial operations, highlighting the profound impact of climate change on essential resources and potentially leading to significant economic and social disruption.

Key facts

  • Severe drought conditions in the US West are creating intense competition for water resources.
  • The Colorado River system, which supplies water to 40 million people and irrigates millions of acres, is experiencing record-low levels.
  • Farmers are increasingly in conflict with urban residents and industrial users over dwindling water supplies.
  • Federal officials are considering substantial cuts to water allocations for Arizona, California, and Nevada.
  • Some Western towns face the prospect of running out of water within months, while ranchers are selling off livestock due to dry conditions.

Severe drought conditions across the Western United States are intensifying competition for water, pitting agricultural users against urban populations and industrial entities. The Colorado River system, a vital water source for approximately 40 million people and millions of acres of farmland across seven states and Mexico, is experiencing record-low levels due to decades of drought, compounded by a historically dry winter and record-high March temperatures.

In Arizona, farmers like Nancy Caywood are struggling as reservoirs like the San Carlos Reservoir have been depleted to 1% capacity, forcing them to pay fees for water that is no longer available. Some farmers are considering selling their land to developers for solar projects. Jace Miller, another Arizona farmer, has left over half his fields fallow and notes that housing developers are acquiring agricultural land. He advocates for a moratorium on residential growth to protect food security and suggests solutions like cross-country water pipelines.

Conversely, in affluent Phoenix suburbs like Scottsdale, officials are exploring ways to secure water for their growing populations. Michelle Ugenti-Rita, a city council candidate, suggested that water historically used for agriculture could be redirected to urban needs, questioning the allocation to the farming community. However, Colorado State University scientist Brad Udall cautioned against over-reliance on Arizona's non-renewable groundwater reserves, which have supported population growth.

At the headwaters of the Colorado River, the U.S. Bureau of Reclamation is evaluating a proposal from Arizona, California, and Nevada to reduce their water usage by about 21% annually through 2028 to maintain critical reservoir levels. This proposal has heightened tensions between the Lower Basin states and the Upper Basin states (Colorado, New Mexico, Utah, and Wyoming) over the division of the river's shrinking flow, potentially leading to legal disputes.

In Colorado, rancher Robbie LeValley has cultivated only a quarter of her usual hay crop due to early snowmelt water depletion, leading to tripled hay prices in her region. She disputes the notion that agriculture is the primary cause of the river's water woes. Meanwhile, in Emery, Utah, the town's sole water source, Muddy Creek, is operating at 6% of its normal volume, forcing residents to conserve water and the town to consider trucking in supplies if precipitation does not arrive soon.

Frequently asked questions

The water shortage is primarily caused by decades of drought, exacerbated by record-low winter snowpack and historically high temperatures.

The Colorado River system supplies water to seven Western states and Mexico, with Arizona, California, and Nevada facing potential steep cuts in their allocations.

Farmers are facing water scarcity, leading to fallowed fields, reduced crop yields, and in some cases, the need to sell land or livestock. They are also in conflict with urban and industrial users over water rights.

Federal officials are considering significant reductions in water allocations from the Colorado River, and discussions are ongoing between states about how to divide the shrinking flow.

What Happens Next

01Federal officials will decide on proposed cuts to Colorado River water allocations for Arizona, California, and Nevada.
02The Upper and Lower Basin states may engage in legal proceedings over water-sharing agreements.
03Western towns will continue to monitor precipitation levels and explore alternative water sources.

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Cadence
CME Headlines
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    14 Jul · 8:10 PM
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  • Cattle futures slid as hog futures posted modest gains
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How It Developed

Decades of drought and record-low snowpack have led to severe water shortages across the Western United States.
Communities are facing critical water scarcity, with reservoirs at historic lows and some towns at risk of running out of water.
Competition for water is escalating between agricultural users, urban populations, and industrial entities like data centers and semiconductor plants.
Federal officials are considering significant cuts to water allocations from the Colorado River for Arizona, California, and Nevada.
Farmers in Arizona are paying fees for water that is no longer available, with some considering selling land for solar projects.
In Utah, a town's primary water source is running at a fraction of its normal volume, leading to strict water conservation measures.
A Colorado rancher has sold a portion of her herd due to empty stock ponds and reduced hay crop yields.
Discussions are underway regarding proposals to reduce Colorado River use by approximately 21% annually through 2028 to stabilize reservoir levels.

Sources

T1
In US West, drought pits farms against towns, industry in scramble for waterReuters

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