Land values in California are based on what that land can produce. If for some reason water allocation is cut short, the revenue potential of that land depreciates. SGMA means water allocations are shrinking and the result is less land that you can actually farm. The value of your land starts to depreciate when there is a reduction in your production. This article explains how to Increase your land value with the Sustainable Groundwater Management Act (SGMA).
For example; if I had a hundred acres and I was allocated only twenty percent of land use, a 20 percent reduction of revenue; hence 30 percent allocation of land means 30 percent reduction so on and so forth. It’s like having an apartment building and not being able to rent 20% percent of the apartments.
What we offer
With UmidaAG we emphasize on what you can use with that same amount of water allocation without having to fallow your land. Let’s say it’s only 50 percent for a hundred acres; it means you would have to typically retire 50% of your acreage. But at UmidaAG, we are actually able to stretch that 50 percent; you’re able to keep the full hundred percent acreage in production.
How It works
UmidaAG provides a subsurface irrigation system that irrigates from the roots up. It eliminates all the water loss to evaporation, saving you anywhere from 30 to 50 percent.
The subsurface irrigation system accumulates enough water back into the groundwater table by injecting storm water or spring runoff into the system. It is engineered so that the water flows across the whole row. It creates a virtual water table five feet below the surface, and in turn creates a moisture plume that plants feed from.
SGMA valuation for banks, supply chain and investors
These pipes are not small; they are six inches in diameter. It’s a large capital investment into your farm but it secures the long-term viability of your orchard for many generations. Profitability adds to your assets and the evaluation of equity to your farm land.
We help you achieve SGMA compliance, that means you can say “I am groundwater balance” to the bank. By informing your financial institution that you are SGMA compliant, the bank (institutions) won’t discount your property or operating loans like everyone else.
Another advantage; by informing your supply chain that you have the acreage and water availability to consistently supply them with the products that they desire, this reassures them their product will be available. Maybe it’s almonds, peaches, apricots, cotton whatever it may be, you can secure your supply chain. It will allow them to report back to their investors that they are secure for the inputs of their agricultural products in order to make their products.
We know It’s new
Twenty years ago in 1960 drip irrigation was new, anything new is usually taken with some hesitation at first. People were scared of how drip was going to help their orchards. Now it’s a standard. It’s the same thing with us, we have a new category, a new style of irrigation.
Leaders who adopt it early, are going to be ahead of the curve. Think of it as an opportunity to invest in your farm with upward potential.