Having shrewdly maneuvered the backroom politics of California’s byzantine water rules, they are now thought to consume more of the state’s water than any other family, farm, or company. They control more of it in some years than what’s used by the residents of Los Angeles and the entire San Francisco Bay Area combined.
[...]
Their land came with decades-old contracts with the state and federal government that allow them to purchase water piped south by state canals. The Kern Water Bank gave them the ability to store this water and sell it back to the state at a premium in times of drought. According to an investigation by the Contra Costa Times, between 2000 and 2007 the Resnicks bought water for potentially as little as $28 per acre-foot (the amount needed to cover one acre in one foot of water) and then sold it for as much as $196 per acre-foot to the state, which used it to supply other farmers whose Delta supply had been previously curtailed. The couple pocketed more than $30 million in the process.
How megafarmers Lynda and Stewart Resnick built their billion-dollar empire.
https://www.motherjones.com/environment/2016/08/lynda-stewar...
Having shrewdly maneuvered the backroom politics of California’s byzantine water rules, they are now thought to consume more of the state’s water than any other family, farm, or company. They control more of it in some years than what’s used by the residents of Los Angeles and the entire San Francisco Bay Area combined.
[...]
Their land came with decades-old contracts with the state and federal government that allow them to purchase water piped south by state canals. The Kern Water Bank gave them the ability to store this water and sell it back to the state at a premium in times of drought. According to an investigation by the Contra Costa Times, between 2000 and 2007 the Resnicks bought water for potentially as little as $28 per acre-foot (the amount needed to cover one acre in one foot of water) and then sold it for as much as $196 per acre-foot to the state, which used it to supply other farmers whose Delta supply had been previously curtailed. The couple pocketed more than $30 million in the process.