Forty million Californians are facing severe drought. Meanwhile, a billionaire couple owns a significant portion of the state's water system. This ownership was established through secret meetings two decades ago. Taxpayers largely funded this system, yet the billionaires now control it. Urban water systems are struggling. In 2023, they will only receive five percent of the water they requested from the state.
The couple, the Resnicks, are the largest farmers in California. By 2007, they owned farmland equivalent to four San Francisco cities. Nearly half of Americans purchase at least one of their products. This includes pistachios, pomegranate juice, mandarins, and flowers. All these products fall under their company, the Wonderful Company. It is a privately owned entity worth at least five billion dollars. The Resnicks themselves have a net worth of at least eight billion.
Their substantial control over water raises questions. How did they acquire such a large share of this public resource? Linda Resnick is a former child actress. Her father, Jack Harris, was a successful movie distributor known for "The Blob." At nineteen, she founded her own advertising agency. Stewart Resnick came from a middle-class family in New Jersey. He started a janitorial business in grad school and later acquired a security company. Linda offered him marketing services, and they formed a partnership.
They expanded into different businesses and acquired Teleflora and Franklin Mint. In the late 1980s, they entered the agriculture industry. They started with pistachios and expanded into almonds, pomegranates, citrus, and wine. They purchased land in Kern County, which provided crucial water rights.
As the Resnicks grew their empire, California built new water infrastructure using taxpayer money. California experiences inconsistent rainfall, leading to droughts and surpluses. To manage this, the state built water banks to store excess water. One such facility is the Kern Water Bank, established in 1988 and funded with taxpayer dollars. This infrastructure could have benefited the people, but the Resnicks sought control.
In 1994, state water officials held a secret meeting that changed water management rules. This meeting redefined California's water regulations without public input. The new agreement favored agricultural billionaires over urban water needs. It eliminated an earlier rule giving preference to urban areas during droughts. As a result, cities must now buy water from private companies like the Resnicks when supply runs low.
Additionally, the new rules allowed for "paper water," which inflated available water quantities. The ownership of the Kern Water Bank shifted to private contractors, including a subsidiary of Wonderful Foods. This transition enabled the Resnicks to control a substantial portion of California's water resources.
During droughts, the Resnicks can sell water back to urban systems. They profit by using taxpayer-funded water to grow expensive crops, making them unaffordable for many. They also control additional water boards and have faced lawsuits for directing excessive water to their properties.
To further their interests, the Resnicks contribute millions to political campaigns. They support initiatives that help them maintain control over water systems. One notable project is the proposed California Delta Tunnel, which would divert water to their farms. They have also cultivated a close relationship with key politicians, including Senator Dianne Feinstein.
Feinstein has sponsored bills that redirect taxpayer money to water projects benefiting the Resnicks. They have also attempted to influence scientific studies to suit their needs. The Resnicks donate significantly to the University of California system, focusing on agricultural studies. This financial influence shapes research agendas, leading to more taxpayer funding benefiting their interests.
The Resnicks' control over water is detrimental to California. Agriculture uses 80 percent of the state's water but contributes only 2 percent to its GDP. Their actions not only harm the environment but also exploit workers.
Water should be recognized as a public resource and a human right. Legislative changes are necessary to prevent individuals like the Resnicks from controlling it.
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