Agriculture & Water Management

The Sustainable Groundwater Management Act (SGMA) could have a significant impact on potential land values in California, especially for properties that rely heavily on groundwater resources. The SGMA requires local agencies to develop groundwater sustainability plans for areas where groundwater basins are in a state of overdraft or where there is a potential for overdraft. These plans may include measures to limit groundwater pumping and increase water use efficiency to achieve sustainable groundwater management.

For properties that rely heavily on groundwater resources, the SGMA regulations may increase the cost of operating and maintaining those properties, especially if they need to implement costly water conservation measures or invest in alternative water sources. In some cases, it could also limit the amount of water available for irrigation, potentially reducing crop yields and impacting the profitability of agricultural operations.

On the other hand, properties that have already implemented sustainable groundwater management practices and have a reliable water supply may become more valuable as water becomes scarcer and more regulated. Additionally, there may be opportunities for landowners to sell or lease their groundwater rights to other users, which could potentially generate additional income.

Overall, the impact of SGMA on land values in California will depend on a variety of factors, including the location of the property, the availability and reliability of water sources, and the extent to which the property is impacted by the new regulations.

How will this affect potential land values in California? 

The Sustainable Groundwater Management Act (SGMA) could have a significant impact on potential land values in California, especially for properties that rely heavily on groundwater resources. The SGMA requires local agencies to develop groundwater sustainability plans for areas where groundwater basins are in a state of overdraft or where there is a potential for overdraft. These plans may include measures to limit groundwater pumping and increase water use efficiency to achieve sustainable groundwater management.

For properties that rely heavily on groundwater resources, the SGMA regulations may increase the cost of operating and maintaining those properties, especially if they need to implement costly water conservation measures or invest in alternative water sources. In some cases, it could also limit the amount of water available for irrigation, potentially reducing crop yields and impacting the profitability of agricultural operations.

On the other hand, properties that have already implemented sustainable groundwater management practices and have a reliable water supply may become more valuable as water becomes scarcer and more regulated. Additionally, there may be opportunities for landowners to sell or lease their groundwater rights to other users, which could potentially generate additional income.

Overall, the impact of SGMA on land values in California will depend on a variety of factors, including the location of the property, the availability and reliability of water sources, and the extent to which the property is impacted by the new regulations.

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