{"id":25196,"date":"2026-07-15T14:15:08","date_gmt":"2026-07-15T14:15:08","guid":{"rendered":"https:\/\/www.insurancejournal.com\/?p=877706"},"modified":"2026-07-15T14:15:08","modified_gmt":"2026-07-15T14:15:08","slug":"drought-pits-farms-against-towns-and-industry-in-scramble-for-water-in-west","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2026\/07\/15\/drought-pits-farms-against-towns-and-industry-in-scramble-for-water-in-west\/","title":{"rendered":"Drought Pits Farms Against Towns and Industry in Scramble for Water in West"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/www.insurancejournal.com\/img\/social\/opengraph\/ij-social-agribusiness-1200x630.png\" class=\"ff-og-image-inserted\"><\/div>\n<ul class=\"nav nav-tabs tabs tabs-entry\">\n<li class=\"active\"><a href=\"https:\/\/www.insurancejournal.com\/news\/west\/2026\/07\/15\/877706.htm\">Article<\/a><\/li>\n<li><a href=\"https:\/\/www.insurancejournal.com\/news\/west\/2026\/07\/15\/877706.htm?comments\" rel=\"nofollow\">0 Comments<\/a><\/li>\n<\/ul>\n<div class=\"article-content clearfix\">\n<p class=\"reuters\">In Arizona, dead fish lie in the dry bed of a reservoir. To the north, a small Utah town could run out of water in months. And in Colorado, a rancher has sold a fifth of her herd as stock ponds stand empty.<\/p>\n<p>The communities are linked by the Colorado River system, which supplies water to about 40 million people across seven Western states and Mexico and irrigates millions of acres of farmland. Decades of drought, compounded by this year\u2019s record-low winter snowpack and the hottest March on record, have deepened shortages across the basin.<\/p>\n<div class=\"bzn bzn-sized bzn-intext\">\n<ins data-revive-zoneid=\"79\" data-revive-topics=\"agribusiness\" data-revive-companies data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>The drought is pitting farmers against residents of cities and suburbs as well as industrial users including data centers, solar projects and semiconductor plants. Federal officials are considering steep cuts in water allotted from the Colorado River to Arizona, California and Nevada.<\/p>\n<p>Near Casa Grande in central Arizona, farmer Nancy Caywood must pay a $21,000 annual fee to her local water district even though river water ran out in March.<\/p>\n<p>Her approximately 250-acre (100-hectare) alfalfa and cotton farm relies entirely on irrigation from the San Carlos Reservoir on the Gila River, a Colorado River tributary. In a catastrophically bad snow year, demand from farmers and towns has drained the reservoir to 1% capacity, leaving herons and pelicans to feast on bass and carp littering its parched floor.<\/p>\n<p>\u201cWe have hung on for almost 30 years,\u201d said Caywood, who has leased a neighbor\u2019s fields with access to aquifer water. \u201cThere are people approaching you saying, \u2018Would you like to sell your land to put solar panels on it?&#8217;\u201d<\/p>\n<p><strong>Farms And Suburbs<\/strong><\/p>\n<p>Fellow Pinal County farmer Jace Miller is the fifth generation of his family to farm there over 107 years and hopes to bring his son into his business, even though more than half his fields are fallow due to the drought.<\/p>\n<div class=\"bzn bzn-sized bzn-intext-2\">\n<ins data-revive-zoneid=\"162\" data-revive-topics=\"agribusiness\" data-revive-companies data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>Like many farmers in the area, he lost most access to Colorado River water in 2022 as municipal users got priority for dwindling supplies.<\/p>\n<p>Housing developers and solar companies are buying up agricultural land he leases south of Phoenix.<\/p>\n<p>He urged Arizona to impose a moratorium on residential growth, arguing that farmers are critical to the country\u2019s food security. Miller called for creative solutions beyond tapping aquifers, such as cross-country water pipelines similar to those for oil.<\/p>\n<p>\u201cYou can\u2019t just keep taking water from agriculture,\u201d he said.<\/p>\n<p>But Michelle Ugenti-Rita, a city council candidate in the wealthy Phoenix suburb of Scottsdale, said water historically devoted to farming could provide for the city\u2019s water needs.<\/p>\n<p>With 70% of its water coming from the Colorado River, Scottsdale, a city of about 250,000 people, is scrambling to find new sources. Ugenti-Rita said in a telephone interview that buying groundwater rights from farmers and other towns was among the potential solutions.<\/p>\n<p>\u201cThe ag community, they\u2019re a big user of our water. Is that where it should go?\u201d Ugenti-Rita, a former Republican state senator, asked.<\/p>\n<p>Colorado State University scientist Brad Udall said Arizona\u2019s massive groundwater reserves beneath its desert were globally unique and allowed the state\u2019s population to double over four decades. But he said this resource was non-renewable and should not be relied on.<\/p>\n<p>\u201cWe kind of created this monster that you\u2019ve got to continue to feed,\u201d he said of Arizona\u2019s water needs.<\/p>\n<p><strong>At The Headwaters<\/strong><\/p>\n<p>The U.S. Bureau of Reclamation is considering adopting much of a proposal by Arizona, California and Nevada \u2014 known as the Lower Basin states \u2014 to reduce their Colorado River use by around 21% a year through 2028 to maintain critical reservoir levels.<\/p>\n<p>The proposal has sharpened a long-running dispute over how to divide the river\u2019s shrinking flows between those downstream states and the Upper Basin states of Colorado, New Mexico, Utah and Wyoming, which are home to the river\u2019s Rocky Mountain headwaters. The seven states could end up in court.<\/p>\n<p>Colorado rancher Robbie LeValley cultivated only a quarter of her normal hay crop after snowmelt irrigation water ran out two months early. Hay prices have tripled in her Western Slope region, just east of one of the country\u2019s largest areas of drought rated \u201cexceptional,\u201d the worst level.<\/p>\n<p>LeValley, whose husband\u2019s family has ranched near Hotchkiss, Colorado, since 1910, faced similar problems in 2010 and 2012. She rejected suggestions that agriculture is to blame for the Colorado River\u2019s water woes. \u201cWe are benefit. We are not the problem,\u201d LeValley said.<\/p>\n<p>In Emery, Utah, some 190 miles (306 km) west of LeValley\u2019s ranch, the Muddy Creek, which feeds the Colorado River in good years, is the only source of drinking water for the town\u2019s 330 people. It is running at 6% of normal volume after extremely low snowpack in its Wasatch Mountains headwaters.<\/p>\n<p>Outside watering is banned, and residents use bath and dish water to keep trees and gardens alive.<\/p>\n<p>The town has reservoir water that should last six to nine months, said 61-year-old Mayor Jack Funk, who is testing old wells and springs for possible use. After that, it will have to start trucking in supplies, unless alternatives are found or precipitation arrives.<\/p>\n<p>\u201cEverybody thought we\u2019d never run out of water in Emery, because we\u2019re not a very big town, but here we are,\u201d said Funk.<\/p>\n<p><em>(Reporting by Hay in New Mexico; Editing by Donna Bryson and Cynthia Osterman)<\/em><\/p>\n<p class=\"tagtag\"> <span class=\"tagtag\">Topics<\/span> <a href=\"https:\/\/www.insurancejournal.com\/agribusiness\/\" class=\"btn btn-sm btn-primary tagtag\">Agribusiness<\/a> <\/p>\n<\/p><\/div>\n<div class=\"article-poll\" data-post=\"877706\">\n<div class=\"article-poll-vote\">\n<p>Was this article valuable?<\/p>\n<\/p><\/div>\n<div class=\"article-poll-feedback voted-no\">\n<form class=\"feedback-form\">\n<p>Thank you! 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And in Colorado, a rancher&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":25197,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[280,1039,11,1,592,2165,9,85],"class_list":["post-25196","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-agriculture","tag-drought","tag-lawsuit","tag-news","tag-risk","tag-water","tag-west-news","tag-wildfire"],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2026\/07\/drought-pits-farms-against-towns-and-industry-in-scramble-for-water-in-west.png","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/25196","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=25196"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/25196\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/25197"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=25196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=25196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=25196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}