Action 5 and California Water: What the New Federal Decision Means for Agriculture

A shift in long-term operations of the Central Valley Project (CVP) and State Water Project (SWP) could reshape water reliability for farms, communities, and food production across California.

In December 2025, the U.S. Department of the Interior finalized a new Record of Decision (ROD) adopting Action 5 for the long-term operation of the CVP and SWP. The decision responds to recent federal directives aimed at increasing water deliveries and hydropower production while remaining within existing environmental and legal frameworks.

For California agriculture—particularly in the Central Valley—this decision carries meaningful implications.

Why Action 5 Matters to Agriculture

The CVP and SWP together supply water to more than 4 million acres of farmland, supporting some of the most productive agricultural regions in the world. Years of regulatory uncertainty, drought, and operational constraints have made long-term water planning increasingly difficult for growers.

Action 5 seeks to recalibrate system operations with a clearer emphasis on water reliability for high-need communities and agricultural users, while still complying with federal environmental laws.

Key Changes Under Action 5

Increased Water Deliveries

Under Action 5, annual water deliveries may increase by:

  • Up to 180,000 acre-feet for the CVP, and
  • Up to 220,000 acre-feet for the SWP,

compared to prior operational assumptions.

For farmers, this translates into improved allocation potential during certain hydrologic conditions—particularly in years when flexibility in Delta operations allows additional pumping without exceeding environmental thresholds.

Removal of Certain Delta Flow Requirements

Action 5 removes specific flow and export reduction measures that federal agencies determined provided limited biological benefit relative to their cost in water supply. These changes allow operators to better align real-time conditions with actual environmental outcomes rather than relying on rigid, calendar-based restrictions.

For agriculture, this adjustment may reduce sudden, mid-season supply constraints that complicate irrigation planning.

Emphasis on Real-Time, Science-Based Management

Rather than relying solely on fixed operational triggers, Action 5 expands the use of:

  • Predictive modeling
  • Real-time monitoring
  • Adaptive management tools

This approach is intended to protect fish populations while avoiding unnecessary reductions in water deliveries. For growers, it signals a move toward more responsive and transparent water operations, especially during critical planting and irrigation periods.

Continued Focus on Drought Resilience

The decision maintains multi-year drought planning frameworks—particularly at Shasta Reservoir—designed to preserve cold water for fisheries while balancing downstream supply needs.

While some drought-year reductions remain possible, Action 5 prioritizes storage preservation strategies that reduce long-term risk rather than imposing immediate, across-the-board curtailments.

What This Means for Farmers

From an agricultural perspective, Action 5 represents:

  • Greater operational flexibility
  • Improved potential for water deliveries in certain years
  • A governance structure that weighs water supply impacts alongside environmental outcomes

It does not eliminate regulatory constraints, nor does it guarantee full allocations. However, it does signal a policy direction that places renewed emphasis on agriculture’s role in food security, rural economies, and high-need communities.

Looking Ahead

Implementation will matter as much as policy. How Action 5 is applied in real-world conditions—particularly during dry years—will determine its true impact on farms and water districts.

For growers, lenders, and agribusiness leaders, the decision underscores the importance of staying informed on federal water operations as they continue to shape planting decisions, land values, and long-term investment across California agriculture.

Full Decision Document

For readers seeking additional technical detail, regulatory context, and operational specifics, the full Record of Decision – Action 5 is available below:

📄 Download the full Record of Decision: Here

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