Strategic Water Pricing for Ag
Many Escondido farms and nurseries buy water from the City of Escondido, and water prices have been rising due to rising imported water prices and the need to invest in local infrastructure. City of Escondido government leaders and members of the agricultural community are concerned that continued increases in water rates will cause agricultural water users to reduce usage, decrease crop output, and possibly stop farming all together. In recent years water price increases have already caused significant loss in farm yields and economic output. If these conditions continue, it will hurt farmers, and significantly impact Escondido’s economy. Given this serious situation, growers in the area are working with the City to develop a new agricultural water service level and rate structure.
Establishing a special service water rate that ensures both sustainable agriculture and benefits to the city will require a collaborative dialogue between the City and growers. The new agricultural water service level and rate will need to consider the economic and operational advantages of farming, including agriculture’s key role in the City implementing recycled water. Use of recycled water will reduce demand on potable water supplies. Establishing the special service level rate for agriculture is an investment in Escondido’s future that makes business sense.
