Are the below market water rates for agricultural recipients of the Central Valley Project (CVP) a water subsidy in disguise? This panel will bring the debate over subsidized water to the forefront with a discussion of the underlying economics and opposing viewpoints. Given that CVP is the largest federal water project in the nation and that a substantial percentage of Reclamation project land lies in California, the debates surrounding these reduced water rates for farmers are highly contested. Panelists will discuss if there is truth to the statement that California's water system would work well if it weren't for subsidized agriculture, or, at least, what appears to be subsidized agriculture. Or is it the case that most of today's farmers have paid for their water subsidies through other avenues, like higher land prices, and that eliminating subsidies or low water rates is not the most efficient way to encourage farmers to conserve water. This panel will explore the various approaches and opinions concerning this incredibly significant debate.