Water Continued from Page 1
Westside Transplant in Merced County, which supplies tomato transplants to farmers across the state, said last month that growers in the Westlands Water District were hesitating to plant processing tomatoes because of uncertainty around water supplies. While tomato acreage is largely dictated by the supply needs of canneries, which are contracting less tonnage this year, Nicks said water supplies also play a role.
“It was kind of shocking,” she said last week, that the allocation for farmers south of the delta was not increased more. A larger revision, in line with the state’s water sup- plies, might have prompted some growers to order more tomato transplants, she said. “Depending on how things go,” Nicks said, “they could still change the alloca- tion. But by that time, it’s kind of too late.” Westlands Water District said it con- ducted an analysis that found steelhead
trout and winter-run chinook salmon “are expected to trigger further restrictions on delta pumping into June,” which is after farmers of many crops will have made their cropping decisions for the year. “The hydrology this year is good,” Scheuring said. “If we have folks that are getting shorted, that’s a problem.” (Caleb Hampton is an assistant editor of Ag Alert. He may be contacted at champton@cfbf.com.)
because our expectations are unrealistic,” said Allison Febbo, general manager for Westlands Water District, a major water provider that supplies farms in Fresno and Kings counties. “The broad public discussions surrounding water management in California have led us to believe that higher levels of delivery would be possible in better hydrologic years, such as this one.” Allocations for farmers and other con- tractors south of the delta were limited by the presence of protected fish species near pumping facilities, which resulted in reduced pumping from the delta into the San Luis Reservoir. The reservoir serves state and federal water systems. “While the series of storms in Northern California improved the water supply out- look, a number of factors, particularly an- ticipated regulatory constraints through- out the spring, continue to limit the water supply allocation for south-of-delta agri- culture,” said Karl Stock, regional director for the Bureau of Reclamation. DWR director Karla Nemeth said the state agency was doing its best “to balance water supply needs while protecting native fish species.” The threatened and endangered fish species found near pumping facilities include delta smelt, winter-run chinook salmon and steelhead trout. Regulations designed to protect those species have made it hard for San Joaquin Valley farm- ers to anticipate water supplies from year to year, Scheuring said. “Oftentimes, we find that species-relat- ed restrictions hamper the flow of water from north to south,” he said. “It is not so much a supply problem as a regulatory problem and, some would say, an infra- structure problem.” DWR emphasized the need for the Delta Conveyance Project, which would move water south from the delta through a 45- mile tunnel. The $16 billion project would “make it possible to move more water during high flow events while helping fish species like steelhead trout avoid threats posed by current pumping infrastructure,” the department said. In December, the water agency released a final environmental impact report, ap- proving the project. The tunnel still needs buy-in from water users that would fund the project, and it faces challenges from opponents trying to block it in court. Febbo said the inability to move water south through the current system has con- sequences for crop production and the peo- ple who make their living from agriculture. “Inadequate and unpredictable water supplies have a direct impact on the com- munities and farms in the San Joaquin Valley and their ability to feed the nation and the world,” she said. Febbo called the most recent allocation “a missed opportunity to celebrate what appears to be good outcomes for fisheries and to also provide water supplies that are essential for the San Joaquin Valley, an area already struggling with economic challenges and rising unemployment.” Nicole Nicks, general manager at
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EXAMPLE: CHARITABLE REMAINDER TRUST VS. OUTRIGHT SALE COMPARISON
OUTRIGHT SALE
CHARITABLE REMAINDER TRUST
Sales Price
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$4,000,000 ($200,000) $3,800,000
Sales Cost (5%) Net Proceeds
Estimated Capital Gains Tax
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Sale Proceeds
$3,800,000 $1,225,480
Charitable Income Tax Deduction
- -
Net Annual Income
$190,000
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April 3, 2024 Ag Alert 11
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