Head West, Young Man…Unless You Need Water.

In the face of climate change, droughts, and increased demand from urban/residential areas, the US Bureau of Reclamation is ordering farmers to significantly cut their water usage. A major source of water for the American West, the Colorado River has been depleting its water supply for many years. Lake Meade, a reservoir supplied by the Colorado River, has been so depleted of water that the low levels are threating the local tourism industry and hydroelectric energy production.

As a result of the cuts, farmers are facing some difficult choices. Some have adapted water-saving technologies, such as drip-irrigation and planting drought-resistant crops. Others have simply decided to plant smaller plots of land. Many farmers grow crops that are used for livestock feed, which has downstream effects on ranchers. Many ranchers who bought feed locally will now have to purchase from other parts of the country and pay additional shipping costs to procure feed. Some farmers, not seeing much of a future in farming are planning to get out of the business all together. As one farmer put it, “I just finally woke up one day and thought, the secretary of the Interior one day is going to say, ‘It’s more important for you to flush your toilet and have water to brush your teeth with than farm,’” Ollerton said.

Questions/Discussion

1. What is the “Tragedy of the Commons,” and how does it apply to water usage in this story? What are some methods of avoiding the Tragedy of the Commons that might be applied in this situation?
2. Draw a PPF curve illustrating water usage for two purposes: watering crops and brushing teeth. Show how the PPF changes when farmers adopt new technologies like drip irrigation.
3. Explain how rising costs of cattle feed affect supply and/or demand in the beef industry.
4. Discuss the opportunity costs associated with using water for farming vs. other uses.

Sources: News Channel 3 WREG@Memphis: First-ever mandatory water cuts expected in West as reservoirs dip to historic lows; Photo by Jennifer Uppendahl on Unsplash