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Higher water prices may be in the pipeline for South Bay farmers as the Santa Clara County Water District may reduce the subsidies that have kept their prices significantly below market rate.
Farmers currently only pay six percent of what other customers are charged for ground water in Santa Clara County. The rest is covered through property taxes, but the water management officials will vote on Tuesday on a plan that would charge agricultural producers more to finance water-delivery improvement throughout the system.
Farmers say even a minor uptick in the cost of groundwater could drive them out of business. Joe Ghiggeri, with G&S Farms, told CBS 13 in Sacramento growers do everything they can to make the most of every drop.
"There's a big process to it, "said Ghiggeri. "Since we're irrigating less, but irrigating more frequently, we're constantly running our pumps."
The water subsidy for farmers has been in place for decades, according to the Mercury News, in order to help farmers continue to make a living and to keep more agricultural land from disappearing.
Over 21,000 acres of farmland have been lost to development in Santa Clara county over the last 30 years.