California Water Project 1955 1961 Transcript 1965
California Water Project 1955 1961 Transcript 1965
Harvey O Banks
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This policy was rejected by the Department of Water Resources and by the majority of the legislature as a feasible policy for the California State Project. To whom would you trace the notion of the surcharge which was thought to be useful and an important substitute Tor the acreage limitations policy? Banks: Well, I think that it should be made clear that the acreage limitations policy or reclamation law is accompanied fcj> a very great subsidy to agriculture. Brown: Over $10. 00 an acre- foot,... it s been estimated. Banks: Well, it s something in that order, and in some cases it amounts to something much more than that. Actually in the Central Valley under the^ederal reclamation laws the true cost o p agricultural water delivered in the Valley is possibly in the order of three to four times what the farmer actually pays for. So that acreage limitation under reclamation law is accompanied by a very large subsidy . The State obviously cannot afford that type of subsidy--it doesn t have any sort of revenue to pay the subsidy.
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