Groundwater rules threaten small farms, prompting calls for tiered fees

New California groundwater limits and fees are forcing small growers like Rosie Lee to leave half their fields fallow, sparking concerns that the policy favors large agribusinesses.

California’s effort to curb groundwater depletion through the Sustainable Groundwater Management Act is hitting small producers hard, as uniform pumping limits and flat fees burden farms with limited resources. Rosie Lee, who runs a 19-acre diversified farm in Merced County, has halted planting on half her land after a warning notice from the Merced Irrigation-Urban Groundwater Sustainability Agency indicated potential penalties exceeding $15,000.

A joint study by the University of California Small Farms Network and the Community Alliance with Family Farmers says the one-size-fits-all approach could accelerate land consolidation by wealthy corporate growers. Co-authors Ngodoo Atume and Catherine Van Dyke recommend that agencies create exemptions or tiered fee structures for farms using less water, especially those under 200 acres. Similar concerns are echoed by growers in Clovis, Tulare County and Yolo County, who fear the lack of water guarantees may force closures. The researchers caution that without policy adjustments, small farms risk disappearing, reshaping the Central Valley’s agricultural landscape.