PTWbrian

Hi Dave. There have been a zillion articles and tweets lately claiming that farmers "need to pay the true cost of water." Exempting the federal subsidies for Reclamation projects, which are substantial, I don't see how they aren't. If I dug a ditch in 1867 for $10,000, and it fills up in the spring, haven't I paid the marginal cost of acquiring X volume of water? How can I be expected to pay more for it, and who would I pay it to?

*Edited for clarity

I see what you mean, but if we each own a furniture business, and I can acquire timber more easily than you can, but you hand-make expensive furniture and I make cheap crap, surely we wouldn't say my business receives an opportunity cost subsidy, right? We would simply say I enjoy lower marginal costs.