Incentivized Fallowing Program
Background and Objectives
Implementation of Voluntary Land Fallowing is Management Action 2 in the Revised Turlock Subbasin Groundwater Sustainability Plan (“GSP”), and is a key component of implementing the East Turlock Subbasin Groundwater Sustainability Agency’s (“ETSGSA”) Groundwater Demand Reduction Plan (“Demand Reduction Plan”), which is included in the GSP as Appendix K.
As detailed in the Demand Reduction Plan, at this time it is estimated that approximately 21,000 acres of irrigated land in ETSGSA will need to transition to non-irrigated status to achieve the sustainability goals of the GSP. Fallowing of 21,000 acres, or an equivalent net demand reduction strategy, is also required by the Groundwater Accounting Structure Agreement between ETSGSA, the West Turlock Subbasin Groundwater Sustainability Agency (“WTSGSA”), and Turlock Irrigation District (“TID”). Consistent with the Demand Reduction Plan, ETSGSA intends to implement demand reduction within its jurisdiction through coordination of a combination of programs, including the following:
Surface water supply projects to replace groundwater pumping for irrigation and increase recharge (Projects 12, 13, 14 and 15 of the GSP);
A Multibenefit Land Repurposing Program (“MLRP”) to transition land from irrigated to non-irrigated use and decrease groundwater demand (Management Action 1 and Projects 16, 17 and 18 of the GSP, the initial implementation of which is funded by a grant from the Department of Conservation);
Self-directed fallowing (Management Action 3 of the GSP) incentivized by credits under ETSGSA’s Groundwater Use Regulation and Fee Program (Management Actions 7 through 10 of the GSP);
Land acquisition and retirement (part of Management Action 2 of the GSP); and
An Incentivized Fallowing Program (“IFP”) (part of Management Action 2 of the GSP).
The purpose of the IFP is to provide a means to efficiently transition land from irrigated to non-irrigated status to address additional demand reduction needed after considering implementation of the other PMAs. As such, a landowner’s participation in the IFP will be established under relatively short-term (three-year) agreements, without the longer-term land use restrictions, implementation and permitting requirements, or larger up-front costs that may be associated with implementation of other PMAs. The need for additional IFP enrollment and implementation will be evaluated annually. The decision to extend the IFP program beyond the initial three-year term and subsequent terms in the future will take into consideration the additional demand reduction needed to achieve near-term GSP compliance, in an effort to strike the appropriate balance between meeting short-term needs and the resources needed to meet ETSGSA’s longer-term sustainability goals.
Eligibility
The following conditions must be met for an Applicant to be eligible for participation in the IFP:
If an Owner or Operator’s Application is approved by ETSGSA, the Applicant will transition and maintain the proposed Enrolled Acreage in a Fallowed condition for the entirety of the Reporting Periods for which the IFP Agreement is in effect, for at least three consecutive Reporting periods.
The proposed Enrolled Acreage is owned by the Applicant; or, if the Applicant is an Operator (lessee), they shall provide proof that they hold an agricultural lease that includes the proposed Enrolled Acreage and extends through the full term of the proposed IFP Agreement. If the proposed Enrolled Acreage is leased, the Owner must provide a signed acknowledgment of the Operator’s Application and will be required to provide written consent regarding the IFP Agreement.
The proposed Enrolled Acreage consists of at least five (5) contiguous acres.
The proposed Enrolled Acreage was irrigated or part of a managed rotational Fallowing program in 2022 (the year the GSP was adopted).
The Applicant’s Water Account must be in good standing with ETSGSA and up to date on payments of all SGMA Operational Assessments and Groundwater Use Fees at the time the Application is submitted and throughout the term of the IFP Agreement.
Applicants who seek to conduct Rotational Fallowing must identify all Parcels and field(s) (GAP Usage Locations) to be Fallowed for each Reporting Period.
Fields that were Fallowed in the Reporting Period preceding the proposed IFP enrollment and that are managed in accordance with the requirements for Fallowed Fields (Section 4.04 of ETSGSA’s Rules and Regulations) are eligible to participate in the IFP if they meet the above requirements.
Requirements
To enroll land in the IFP, the Applicant must enter into an agreement with ETSGSA that specifies the terms and conditions that must be met for participation in the IFP. The following requirements shall apply to participation in the IFP. ETSGSA reserves the right to impose additional requirements that may be necessary due to site-specific conditions.
Any crops must be removed by June 30 of the first Reporting Period proposed for enrollment and no irrigation shall occur within the Fallowed Field at any time during the Reporting Period.
The Applicant must specify the number of proposed acres that will be Fallowed, and the field(s) (GAP Usage Locations) and Parcel(s) within which the fallowing will occur and agrees to maintain the Enrolled Acreage as Fallowed, non-irrigated land for three consecutive Reporting Periods. If an Applicant seeks to implement Rotational Fallowing there must be the same number of acres Fallowed at all times, for the duration of enrollment in the IFP.
In exchange for annual incentive payments, the Applicant shall agree to forfeit all Allocations (as defined in the ETSGSA Rules and Regulations) for the Enrolled Acreage from accrual to their Water Account for the duration of the IFP Agreement.
The Enrolled Acreage will be excluded from Groundwater Use Accounting during the term of the enrollment; that is, Consumed Groundwater Use (ET minus Effective Precipitation) will not be calculated for the Enrolled Acreage and will not accrue as a debit in the Applicant’s Water Account.
The Enrolled Acreage shall be managed consistent with the requirements for Fallowed Fields in Section 4.04 of ETSGSA’s Rules and Regulations.
Vegetative cover shall be maintained on the Enrolled Acreage as specified in ETSGSA’s “Implementation Standards and Management Requirements for Vegetated Cover.”
The IFP Agreement will be recorded with the applicable County against the title of the enrolled parcels.
All other terms and conditions of the IFP Agreement to be executed by the Owner and/or Operator and ETSGSA shall apply.
How to Apply
Incentivized Fallowing Program Application (2026 Reporting Period)
If you have questions regarding the IFP or how to complete the application, please contact the East Turlock Subbasin GSA at etsgsa-support@formationenv.com or leave a message at (209) 407-1233. You can also visit the Groundwater Accounting Platform’s “Support Desk” tab to submit a Support Ticket.
Enrollment ends December 31, 2025.
For more information the Incentivized Fallowing Program please see additional resources below.