Two weeks after announcing the initial water allocations for the Central Valley Project, the Bureau of Reclamation has already revised them. The Class 1 allocation for the Friant Water Authority now stands at 80% of its contracted amount, up from 45% in late February. 

Friant had described the initial allocation as sensible and appropriate, given dry conditions in January and a below average snowpack in the region. The authority at the time was hopeful the bureau would soon update the allocation to reflect improved conditions. That hope turned to gratitude last week, with Friant praising Reclamation’s responsiveness and its decisive action, providing “much-needed clarity for our water users.” 

But: Row crop farmers have complained that waiting until February to issue the first water estimate is already too late to inform planting decisions. They remain uncertain that further updates to the allocations throughout the spring would change that dynamic. 

By contrast, the State Water Project releases its initial allocation at the start of December. 


Lara agrees to conditional State Farm rate hikes 

Following the influx of claims filed on properties affected by the Los Angeles wildfires, California Insurance Commissioner Ricardo Lara is provisionally approving State Farm’s emergency rate increase request. In exchange, the company must present supporting data at a public hearing next month. 

Lara is also requiring the insurance provider to halt nonrenewals and that it request a $500 million infusion from its parent company to avoid further capital deterioration. 


CAWG says alcohol tariffs won’t save U.S. wine 

With President Donald Trump’s tariff threat to European alcohol, California Association of Winegrape Growers President Natalie Collins said the industry really needs support in the form of long-term policy. 

She said the proposed 200% tariff demonstrates the U.S. wine industry’s competitive disadvantage against the lower production costs and subsidies buoying its foreign counterparts. 

Collins asked lawmakers to consider ways to rectify market advantages held by overseas producers, such as incentives on bulk imports and product labeling. 

It’s here: The 2025 Agri-Pulse Ag and Food Policy Summit takes place today at the National Press Club. You can still register to watch online. 


Scoop: USDA pauses signing of EQIP, CSP applications 

There continue to be new disruptions in funding as the Trump administration gets set up at USDA. 

Agri-Pulse has learned that staff with the Natural Resources Conservation Service has been instructed to stop having producers sign EQIP and CSP applications for fiscal 2025 as the agency reviews program ranking criteria and Inflation Reduction Act funding. That’s according to a notice viewed by Agri-Pulse’s Noah Wicks and two sources with knowledge of the matter. 

While field staff can move preapproved applications for the Environmental Quality Incentives Program to approved status, the agency can’t get those applications signed by producers during the pause. The pause also affects CSP, but NRCS has not preapproved any fiscal 2025 applications for that program. 

“Do not obligate any contracts until further notice,” the email says. 

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Farm-state senator: Tariffs intended as negotiating tool 

South Dakota GOP Sen. Mike Rounds says farmers in his state are giving President Trump leeway to carry out his tariff threats. Farmers “still support the president. They’re going to give him time to actually make a difference,” Rounds told CNN’s State of the Union on Sunday. 

In the senator’s view, Trump’s tariff threats are intended as negotiating leverage to get new trade agreements. 

“We have not had a new trade agreement on our ag products now in over four years. And our commodity prices show that. Most of the farmers and ranchers in our part of the country that have commodities to sell, they’re not making a profit right now. They’re breaking even or less. So, we do need to make some changes,” Rounds said. 

Speaking in particular of Canada, Rounds said Trump believes the Canadians “did a heck of a job in terms of taking advantage of the United States and the trade agreements that have been established so far. He wants to redo them.” 

Keep in mind: If tariffs are merely used as a negotiating tool, they won’t achieve another stated goal of Trump’s – raising revenue to offset tax cuts. 


Canadian PM claims progress in U.S. trade talks 

Mark Carney used his first press conference as Canada’s prime minister to tout progress in U.S. trade talks. 

Senior Canadian officials, including Finance Minister Dominic LeBlanc and Ontario Premier Doug Ford, met with Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer on Thursday. Ford told reporters Friday that the meeting had been “extremely productive” and had served to lower the temperature of the trade conflict. 

Ford added that the same group would meet again this week. 

“I respect what he is looking to accomplish,” Carney said of Trump. “He knows and I know from long experience that we can find mutual solutions that win for both.” 

Carney, a former governor of the Banks of Canada and England and Goldman Sachs banker, is expected to call an election before March 24. He took over as prime minister after Justin Trudeau’s resignation. 


Final word:

“It is up to state leaders to fill the void.” — State Sen. Ben Allen of Santa Monica, responding to the EPA issuing guidance last week to align its “waters of the U.S.” policy with the Supreme Court’s Sackett decision. 

Allen has filed SB 601 to further expand the state water board’s authority to cover more federal duties, building on more than six years of legislative and regulatory efforts to “Trump-proof” the state’s water protections.