Columbia Basin Project - Economic Benefits and Costs

Economic Benefits and Costs

According to the federal Bureau of Reclamation the yearly value of the Columbia Basin Project is $630 million in irrigated crops, $950 million in power production, $20 million in flood damage prevention, and $50 million in recreation. The project itself involves costs that are difficult to determine. The farms that receive irrigation water must pay for it, but due to insufficient data from the Bureau of Reclamation it is not possible to compare the total cost paid by the Bureau to the payments received. Nevertheless, the farm payments account for only a small fraction of the total cost to the government, resulting in a the project's agricultural corporations receiving a large water subsidy from the government. Critics describe the CBP as a classical example of federal money being used to subsidize a relatively small group of private special interest irrigation farming in the American West in places where it would never be economically viable under other circumstances.

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