By Ellen M. Bruno and Nick Hagerty, Giannini Foundation Of Agricultural Economics
In this article we discuss the early effects of the Sustainable Groundwater Management Act (SGMA) on water-related investments in agriculture. We consider the role of the regulation in driving observable trends in new well construction and permanent crop acreage. Contrary to expectations, we find that future regulation does not yet appear to be affecting the rates of well drilling nor new perennial planting.
