California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

The federal Bureau of Reclamation announced last week that farmers and ranchers in
the Central Valley will not receive any water allocations this year unless drought conditions
change. The decision was based on the February 1, 2009 forecast by the California Department
of Water Resources.

The State Water Project had earlier identified that it too will reduce allocations but would at least
supply 15 percent. With no surface water, farmers and ranchers will have to turn to pumping ground
water, or let land go fallow.

Municipal and industrial customers will get 50 percent of requests while those with water rights and
wildlife refuges will get 75 percent, the Bureau says. Water rights holders south of the San Joaquin-
Sacramento Delta will get slightly more – 77 percent.

However, since the forecast, most parts of California have received extensive snow and rainfall
totals with more expected through the end of the month.  The next snow pack analysis is scheduled
for early March and a revised forecast.

I am Tim Johnson and this has been the California Business Minute.