UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION

                     WASHINGTON, D. C. 20549

                            FORM 10-Q

(Mark One)
[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the
     Securities Exchange Act of 1934 for the quarterly period
                       ended June 30, 2005

                               OR

[ ]  Transition Report Pursuant to Section 13 or 15(d) of the
        Securities Exchange Act of 1934 for the transition
                      period from .. to ...


                 Commission File Number 0-12114
                --------------------------------
                           Cadiz Inc.

       (Exact name of registrant specified in its charter)

           DELAWARE                          77-0313235
 (State or other jurisdiction of          (I.R.S. Employer
incorporation or organization)          Identification No.)

   777 S. FIGUEROA STREET, SUITE 4250
       LOS ANGELES, CALIFORNIA                 90017
(Address of principal executive offices)     (Zip Code)

Registrant's telephone number, including area code:  (213) 271-1600

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                         YES  X   NO
                             ---     ---

Indicate by check mark whether the Registrant is an accelerated
filer (as defined in Exchange Act Rule 12b-2).

                         YES      NO  X
                             ---     ---

As of July 19, 2005, the Registrant had 10,965,568 shares of
common stock, par value $0.01 per share, outstanding.



                            CADIZ INC.

                              INDEX

                        FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2005
------------------------------------------------------------------------
                                                                    PAGE

PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

     CADIZ INC. CONSOLIDATED FINANCIAL STATEMENTS

     Unaudited Statement of Operations for the three months ended
     June 30, 2005 and 2004 . . . . . . . . . . . . . . . . . . . . . .1

     Unaudited Statement of Operations for the six months ended
     June 30, 2005 and 2004 . . . . . . . . . . . . . . . . . . . . . .2

     Unaudited Balance Sheet as of June 30, 2005 and December 31, 2004.3

     Unaudited Statement of Cash Flows for the six months ended
     June 30, 2005 and 2004 . . . . . . . . . . . . . . . . . .  . . . 4

     Unaudited Statement of Stockholders' Equity for the six months
     ended June 30, 2005 . . . . . . . . . . . . . . . . . . . .  . . .5

     Unaudited Notes to the Consolidated Financial Statements . . . . .6

     SUN WORLD INTERNATIONAL, INC. CONSOLDIATED FINANCIAL STATEMENTS

     Unaudited Statement of Operations for the three months ended
     June 30, 2005 and 2004 . . . . . . . . . . . . . . . . . . . . . .12

     Unaudited Statement of Operations for the six months ended
     June 30, 2005 and 2004 . . . . . . . . . . . . . . . . . . . . . .13

     Unaudited Balance Sheet as of June 30, 2005 and
     December 31, 2004 . . . . . . . . . . . . . . . . . . . . . . . . 14

     Unaudited Statement of Cash Flows for the six months ended
     June 30, 2005 and 2004 . . . . . . . . . . . . . . . . . . . . . .15

     Unaudited Statement of Stockholder's Deficit for the six months
     ended June 30, 2005 . . . . . . . . . . . . . . . . . . . . . . . 16

     Unaudited Notes to the Consolidated Financial Statements . . . . .17

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
        AND RESULTS OF OPERATIONS. . . . . . . . . . . . . . . . . . . 22

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK . . 29

ITEM 4. CONTROLS AND PROCEDURES . . . . . . . . . . . . . . . . . . . .29

PART II - OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . . .29

                             Page i

                          CADIZ INC.

          CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

-------------------------------------------------------------------
                                             FOR THE THREE MONTHS
                                                ENDED JUNE 30,
($ IN THOUSANDS EXCEPT PER SHARE DATA)          2005      2004
-------------------------------------------------------------------

Revenues                                      $     15  $      9
                                              --------  --------
Costs and expenses:
 General and administrative                        877       479
 Compensation costs from stock and
  option awards                                 11,249         -
 Depreciation and amortization                      67       131
                                              --------  --------

Total costs and expenses                        12,193       610
                                              --------  --------

Operating loss                                 (12,178)     (601)

Interest expense, net                              496     2,123
                                              --------  --------

Loss before income taxes                       (12,674)   (2,724)
Reduction in estimated income tax expense           49         -
                                              --------  --------

Net loss                                      $(12,625) $ (2,724)
                                              ========  ========

Net loss applicable to common stock           $(12,625) $ (2,724)
                                              ========  ========

Basic and diluted net loss per common share   $  (1.18) $  (0.41)
                                              ========  ========

Basic and diluted weighted average shares
 outstanding                                    10,729     6,613
                                              ========  ========

See accompanying notes to the consolidated financial statements.

                             Page 1


                          CADIZ INC.

       CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

-------------------------------------------------------------------
                                              FOR THE SIX MONTHS
                                                ENDED JUNE 30,
($ IN THOUSANDS EXCEPT PER SHARE DATA)          2005      2004
-------------------------------------------------------------------

Revenues                                      $     30  $     20
                                              --------  --------
Costs and expenses:
 General and administrative                      1,831     1,017
 Compensation costs from stock and
  option awards                                 11,249         -
 Depreciation and amortization                     134       262
                                              --------  --------

 Total costs and expenses                       13,214     1,279
                                              --------  --------

Operating loss                                 (13,184)   (1,259)

Interest expense, net                              954     4,280
                                              --------  --------

Loss before income taxes                       (14,138)   (5,539)
Income tax expense                                  56         -
                                              --------  --------

Net loss                                      $(14,194) $ (5,539)
                                              ========  ========

Net loss applicable to common stock           $(14,194) $ (5,539)
                                              ========  ========

Basic and diluted net loss per common share   $  (1.35) $  (0.84)
                                              ========  ========

Basic and diluted weighted average shares
 outstanding                                    10,533     6,580
                                              ========  ========

See accompanying notes to the consolidated financial statements.

                             Page 2


                          CADIZ INC.

              CONSOLIDATED BALANCE SHEET (UNAUDITED)

-------------------------------------------------------------------
                                             JUNE 30, DECEMBER 31,
($ IN THOUSANDS)                               2005       2004
-------------------------------------------------------------------

ASSETS
Current assets:
 Cash and cash equivalents                    $  7,170  $  9,031
 Prepaid interest expense                        1,038     1,106
 Prepaid expenses and other                        181       116
                                              --------  --------
      Total current assets                       8,389    10,253

Property, plant, equipment and water
 programs, net                                  35,426    35,552
Goodwill                                         3,813     3,813
Other assets                                     1,158     1,453
                                              --------  --------

                                              $ 48,786  $ 51,071
                                              ========  ========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
 Accounts payable                             $    333  $    470
 Accrued liabilities                               732       743
                                              --------  --------
      Total current liabilities                  1,065     1,213

Long-term debt                                  25,339    25,000

Commitments and contingencies

Stockholders' equity:
 Series F convertible preferred stock -
  $.01 par value:
  100,000 shares authorized; shares issued
   and outstanding - 1,000 at June 30, 2005
   and December 31, 2004                             -         -
 Common stock - $.01 par value; 70,000,000
  shares authorized; shares issued and
  outstanding - 10,965,568 at June 30, 2005
  and 10,324,339 at December 31, 2004              110       103
 Additional paid-in capital                    221,326   209,615
 Accumulated deficit                          (199,054) (184,860)
                                              --------  --------
 Total stockholders' equity                     22,382    24,858
                                              --------  --------
                                              $ 48,786  $ 51,071
                                              ========  ========

See accompanying notes to the consolidated financial statements.

                             Page 3


                          CADIZ INC.

        CONSOLIDATED STATEMENT OF CASH FLOWS (UNDAUDITED)

-------------------------------------------------------------------
                                             FOR THE SIX MONTHS
                                                ENDED JUNE 30,
 ($ IN THOUSANDS)                               2005      2004
-------------------------------------------------------------------

Cash flows from operating activities:
 Net loss                                     $(14,194) $ (5,539)
 Adjustments to reconcile net loss to
  net cash used for operating activities:
   Depreciation and amortization                   134     2,312
   Interest expense added to loan principal        339       707
   Stock issued for services                       469         -
   Compensation charge for stock awards and
    share options                               11,249         -
 Changes in operating assets and liabilities:
   Decrease in prepaid borrowing expense           339         -
   Increase in prepaid expenses and other          (65)     (111)
   Decrease in accounts payable                   (138)     (233)
   Increase (decrease) in accrued liabilities      (11)      789
                                              --------  --------

   Net cash used for operating activities       (1,878)   (2,075)
                                              --------  --------

Cash flows from investing activities:
 Additions to property, plant and equipment         (8)       (6)
 Decrease in restricted cash                         -       706
 Decrease in other assets                           25        19
                                              --------  --------

   Net cash provided by investing activities        17       719
                                              --------  --------

Net decrease in cash and cash equivalents       (1,861)   (1,356)

Cash and cash equivalents, beginning
 of period                                       9,031     3,422
                                              --------  --------

Cash and cash equivalents, end of period      $  7,170  $  2,066
                                              ========  ========

See accompanying notes to the consolidated financial statements.

                             Page 4


                                CADIZ INC.

         CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED)

--------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED JUNE 30, 2005
($ IN THOUSANDS)
--------------------------------------------------------------------------------
           PREFERRED STOCK    COMMON STOCK  ADDITIONAL                TOTAL
           ---------------    ------------   PAID-IN   ACCUMULATED STOCKHOLDERS'
           SHARES   AMOUNT  SHARES   AMOUNT  CAPITAL     DEFICIT      EQUITY
           ------   ------  ------   ------  -------     -------      ------

Balance as
 of December
 31, 2004    1,000  $  -  10,324,339  $  103  $ 209,615  $(184,860)   $  24,858

Issuance
 of common
 stock for
 services        -     -      37,200       1        468          -          469

Grant of
 incentive
 shares and
 options         -     -     604,029       6     11,243          -       11,249

Net loss         -     -           -       -          -    (14,194)     (14,194)
           -------  ----  ----------  ------  ---------  ---------    ---------

Balance as
 of June
 30, 2005    1,000  $  -  10,965,568  $  110  $ 221,326  $(199,054)   $  22,382
           =======  ====  ==========  ======  =========  =========    =========

 See accompanying notes to the consolidated financial statements.

                             Page 5


                         CADIZ INC.

        NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION
------------------------------

GENERAL

     The Consolidated Financial Statements have been prepared by
Cadiz Inc., sometimes referred to as "Cadiz" or "the Company",
without audit and should be read in conjunction with the
Consolidated Financial Statements and notes thereto included in
the Company's Form 10-K for the year ended December 31, 2004.

     The foregoing Consolidated Financial Statements include the
accounts of the Company and contain all adjustments, consisting
only of normal recurring adjustments, which the Company considers
necessary for a fair presentation of the Company's financial
position, the results of its operations and its cash flows for
the periods presented and have been prepared in accordance with
generally accepted accounting principles.

     The preparation of financial statements in conformity
with generally accepted accounting principles requires management
to make estimates and assumptions that affect the amounts
reported in the financial statements and the accompanying notes.
Actual results could differ from those estimates and such
differences may be material to the financial statements. This
quarterly report on Form 10-Q should be read in conjunction with
the Company's Form 10-K for the year ended December 31, 2004. The
results of operations for the six months ended June 30, 2005 are
not necessarily indicative of results for the entire fiscal year
ending December 31, 2005.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     The financial statements of the Company have been prepared
using accounting principles applicable to a going concern, which
assumes realization of assets and settlement of liabilities in
the normal course of business. The Company incurred losses of
$14.2 million for the six months ended June 30, 2005 and $16
million for the year ended December 31, 2004. The Company had
working capital of $7.3 million at June 30, 2005 and used cash in
operations of $1.8 million for the six months ended June 30, 2005
and $7.6 million for the year ended December 31, 2004. Currently,
the Company's sole focus is the development of its water
resources program.

     During the year ended December 31, 2004, the Company raised
$21.3 million in cash through a private sale of common stock.
Based on current forecasts, the Company believes it has
sufficient resources to fund operations beyond June 2006.  The
Company's current resources do not provide the capital necessary
to fund the water development project should the Company be
required to do so. There is no assurance that additional
financing (public or private) will be available on acceptable
terms or at all. If the Company issues additional equity
securities to raise funds, the ownership percentage of the
Company's existing stockholders would be reduced. New investors
may demand rights, preferences or privileges senior to those of
existing holders of common stock. If the Company cannot raise
needed funds, it might be forced to make further substantial
reductions in its operating expenses, which could adversely
affect its ability to implement its current business plan and
ultimately its viability as a company. These financial statements
do not include any adjustments that might result from these
uncertainties.

                             Page 6

PRINCIPLES OF CONSOLIDATION

     In December 2003, the Company transferred substantially all
of its assets (with the exception of its office sublease, certain
office furniture and equipment and any Sun World related assets)
to Cadiz Real Estate LLC, a Delaware limited liability company
("Cadiz Real Estate").  The Company holds 100% of the equity
interests of Cadiz Real Estate, and therefore continues to hold
100% beneficial ownership of the properties that it transferred
to Cadiz Real Estate.  Because the transfer of the Company's
properties to Cadiz Real Estate has no effect on its ultimate
beneficial ownership of these properties, the properties owned of
record either by Cadiz Real Estate or by the Company are treated
as belonging to the Company.

GOODWILL

     The Company has $3.8 million of goodwill which resulted from
a merger in May 1988 between two companies, which eventually
became known as Cadiz Inc.  Goodwill is not amortized but is
tested for impairment annually in the first quarter, or earlier
if events occur which require an impairment analysis be
performed. The Company performed an impairment test of its
goodwill in the first quarter of 2005 and determined that its
goodwill was not impaired as its market capitalization at March
31, 2005 of $159.4 million was in excess of the Company's net
book value of $23.8 million at that date.

INTANGIBLE AND OTHER LONG-LIVED ASSETS

     Property, plant and equipment, intangible and certain other
long-lived assets are amortized over their useful lives. Useful
lives are based on management's estimates of the period that the
assets will generate revenue. Long-lived assets are reviewed for
impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable.

RECENT ACCOUNTING PRONOUNCEMENTS

     In December 2004, the Financial Accounting Standards Board
issued SFAS no. 123(R) (revised 2004), "Share-Based Payment"
which amends SFAS Statement 123 and will be effective for the
Company beginning January 1, 2006. The new standard will require
the Company to recognize compensation costs in its financial
statements in an amount equal to the fair value of share-based
payments granted to employees and directors. The Company is
currently evaluating how it will adopt the standard and
evaluating the effect that the adoption of SFAS 123(R) will have
on its financial position and results of operations.

STOCK-BASED COMPENSATION

     As permitted under Statement of Financial Accounting
Standards No. 123 ("SFAS 123"), "Accounting for Stock-Based
Compensation", the Company has elected to follow Accounting
Principles Board Opinion No. 25, "Accounting for Stock Issued to
Employees" in accounting for its stock options and other stock-
based employee awards.  Pro forma information regarding net loss
and loss per share, as calculated under the provisions of SFAS
123, as amended by SFAS 148, are disclosed in the table below.
The Company accounts for equity securities issued to non-
employees in accordance with the provision of SFAS 123 and
Emerging Issues Task Force

                             Page 7

96-18.

     Had compensation cost for these plans been determined using
fair value the Company's net loss and net loss per common share
would have increased to the following pro forma amounts (dollars
in thousands):

                                 THREE AND SIX MONTHS ENDED JUNE 30,
                                 -----------------------------------
                                    2005                    2004
                                    ----                    ----
                         THREE MONTHS  SIX MONTHS  THREE MONTHS  SIX MONTHS
                         ------------  ----------  ------------  ----------

Net loss applicable to
 common stock:
 as reported              $ (12,625)   $ (14,194)    $  (2,815)  $  (5,539)

Stock based employee
 compensation cost,
 net of tax effects,
 included in the
 determination of net
 income as reported          11,249       11,249             -           -

Stock based employee
 compensation cost, net
 of tax effects, under
 the fair value method
 if the fair value method
 had been applied           (11,981)     (11,981)            -         (14)
                          ---------    ---------     ---------   ---------
Proforma net loss if the
 fair value method had
 been applied             $ (13,357)   $ (14,926)    $  (2,815)  $  (5,553)
                          =========    =========     =========   =========

Per common share:

Net loss applicable to
 common stock:
 as reported              $   (1.18)   $   (1.35)    $   (0.43)  $   (0.84)

Stock based employee
 compensation cost, net
 of tax effects, included
 in the determination of
 net income as reported        1.05         1.07             -           -

Stock based employee
 compensation cost, net
 of tax effects, under the
 fair value method if the
 fair value method had
 been applied                 (1.12)       (1.14)            -           -
                          ---------    ---------     ---------   ---------

Proforma net loss if the
 fair value method had
 been applied             $   (1.25)   $   (1.42)    $   (0.43)  $   (0.84)
                          =========    =========     =========   =========

     See Note 2 to the Consolidated Financial Statements included in the
Company's Form 10-K for a discussion of the Company's accounting policies.

                             Page 8


NOTE 2 - PROPERTY, PLANT, EQUIPMENT AND WATER PROGRAMS
------------------------------------------------------

     Property, plant, equipment and water programs consist of the
following (in thousands):

                                                JUNE 30, DECEMBER 31,
                                                  2005      2004
                                                  ----      ----

          Land and land improvements           $ 22,010  $ 22,010
          Water programs                         14,274    14,274
          Buildings                               1,408     1,408
          Machinery and equipment                 3,607     3,599
                                               --------  --------
                                                 41,299    41,291
          Less accumulated depreciation          (5,873)   (5,739)
                                               --------  --------

                                               $ 35,426  $ 35,552
                                               ========  ========

     Depreciation expense totaled $67 thousand and $131 thousand
during the three months ended June 30, 2005 and 2004, and $134
thousand and $262 thousand for the six months ended June 30, 2005
and 2004.


NOTE 3 - DEBT
-------------

     On November 30, 2004 the Company entered into an amendment
of its senior term loan agreement with ING whereby it repaid in
full the senior term loan portion of the facility with ING of $10
million and reduced to $25 million the outstanding principal
balance under the existing revolving portion of the loan. The
terms and conditions of the loan facility with ING were amended
in order to extend the maturity date of the debt until March 31,
2010, conditioned upon a further principal reduction of $10
million on or before March 31, 2008, with an interest rate
through March 31, 2008 of 4% cash plus 4% paid in kind ("PIK")
increasing to 4% cash plus 6% PIK for interest periods commencing
on and after April 1, 2008.

     Interest is payable semiannually on March 31 and September
30 each year.  The PIK portion will be added to the outstanding
principal balance.

     On March 31, 2005, the 4% cash interest from November 30,
2004 in the amount of $0.3 million was paid by applying it to a
$2.4 million credit against loan obligations created by ING as
consideration for units purchased by ING as part of a $24 million
private placement completed by the Company in November 2004,
leaving a credit balance of $2.1 million. On the same date, the
accrued 4% PIK portion in the amount of $0.3 million was added to
the principal balance of the loan.

     The terms of the loan facilities require certain mandatory
prepayments from the cash proceeds of future equity issuances by
the Company and prohibit the payment of dividends.

                             Page 9

     The senior term loan is secured by substantially all of the
assets of the Company.


NOTE 4 - INCOME TAXES
---------------------

     In February 2005, our wholly owned subsidiary Sun World
International Inc.("Sun World") completed the sale of
substantially all of its assets.

     The sale will generate a total gain at Sun World of
approximately $11.3 million and $45.2 million for federal and
state income tax purposes, respectively.  For regular income tax
purposes this gain is not expected to generate a tax liability,
in that Sun World and Cadiz file a consolidated tax return and
the companies have sufficient tax attributes to offset the gain
from Sun World.  However, because of state apportionment factors
and the Alternative Minimum Tax (AMT) rules, Cadiz is expected to
have a tax liability of approximately $56 thousand, which amount
has been accrued as of June 30, 2005.  The actual tax liability
will vary from this estimate based upon taxable income generated
during 2005.


NOTE 5 - NET LOSS PER COMMON SHARE
----------------------------------

     Basic earnings per share (EPS) is computed by dividing the
net loss, after deduction for preferred dividends either accrued
or imputed, if any, by the weighted-average common shares
outstanding.  Options, deferred stock units, warrants,
convertible debt, and preferred stock that are convertible into
shares of the Company's common stock were not considered in the
computation of diluted EPS because their inclusion would have
been antidilutive.  Had these instruments been included, the
fully diluted weighted average shares outstanding would have
increased by approximately 1,276,000 and 1,751,000 shares for the
three months ended June 30, 2005 and 2004, respectively.  For the
six months ended June 30, 2005 and 2004, weighted average shares
outstanding would have increased by approximately 849,000 and
1,750,000 shares respectively.


NOTE 6 - PREFERRED AND COMMON STOCK
-----------------------------------

     During the six months ended June 30, 2005, we issued 27,200
shares of common stock in consideration for services valued at
$327,000 and 10,000 shares of common stock in consideration for a
$142,000 accrued bonus.  The shares were issued at $12 per share,
the price of the November 2004 private placement at which time
the issue of the shares was authorized, the services rendered,
the bonus awarded, and the amounts accrued.


NOTE 7 - STOCK-BASED COMPENSATION
---------------------------------

     Under the Cadiz 2003 Management Equity Incentive Plan  a
total of 1,472,051 shares of common stock was available to be
granted to key personnel. Of the 1,472,051 shares, 1,094,712 were
available to be granted with 717,373 shares vesting 2/3
immediately on the date of the grant and 1/3 on December 11,
2005, and 377,339 shares vesting 1/3 upon grant, 1/3 on

                             Page 10

December 7, 2005 and 1/3 on December 7, 2006. The remaining
377,339 shares of common stock were available to be granted in
the form of options to purchase common stock at the price of $12.00
per share. Vesting of the 377,339 options is 1/3 upon grant, 1/3 on
December 7, 2005 and 1/3 on December 7, 2006. All awards are
subject to continued employment or immediate vesting upon
termination without cause.

     During the three months ended June 30, 2005 the Company
granted 1,094,712 shares of common stock and 300,000 stock
options to senior employees under the Cadiz 2003 Management
Equity Incentive Plan.  604,029 of the shares vested immediately
and were issued. The issuance of shares and options under these
Plans results in a charge to the Company's earnings based on the
value of the common stock at the time of the grant and the excess
of the market price over the option exercise price at the time of
their award.  This charge will be recorded over the vesting
period in proportion to the quantities vested.  The value of
shares and options vested during the three month period ended
June 30, 2005 has been recorded as a cost during the period in
the amount of $11.2 million.

     The Company has adopted the disclosure-only provisions of
Statement of Financial Accounting Standards No. 123, ("SFAS
123"), "Accounting for Stock-Based Compensation."

     The fair value of each option granted during 2005 was
estimated on the date of grant using the Black Scholes option
pricing model based on the weighted-average assumptions of: risk-
free interest rate of 4.195%; expected volatility of 40.0%;
expected life of three years; and an expected dividend yield of
zero. No options were granted in 2004.

     The following table summarizes stock option activity for the
periods noted.  All options listed below were issued to officers,
directors, employees and consultants.


                                                        WEIGHTED-AVERAGE
                                                 AMOUNT  EXERCISE PRICE
                                                 ------  --------------
Outstanding at December 31, 2004                      -            -
     Granted                                    300,000      $ 12.00
     Expired or canceled                              -            -
     Exercised                                        -            -
                                                -------      -------
Outstanding at June 30, 2005                    300,000      $ 12.00

                             Page 11


                 SUN WORLD INTERNATIONAL, INC.
                    (DEBTOR-IN-POSSESSION)
          (A WHOLLY-OWNED SUBSIDIARY OF CADIZ INC.)

       CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

-------------------------------------------------------------------
                                               THREE MONTHS ENDED
                                                    JUNE 30,
($ IN THOUSANDS)                                2005       2004
-------------------------------------------------------------------

Revenues                                      $      -  $ 37,069
                                              --------  --------
Costs and expenses:
 Cost of sales                                       -    27,878
 General and administrative                        126     2,083
 Removal of underperforming crops                    -       608
 Depreciation and amortization                       -     1,911
                                              --------  --------

   Total costs and expenses                        126    32,480
                                              --------  --------

Operating profit (loss)                           (126)    4,589

Gain on sale of property                             -    (1,013)

Interest (income) expense, net (contractual
 interest for 2005 and 2004, respectively,
 was $3,306 and $4,013)                           (216)      491
                                              --------  --------

Income before reorganization items and
 income taxes                                       90     5,111

Reorganization items:
 Professional fees                                 154       590
 Sale of assets                                     56         -
                                              --------  --------

Total reorganization items                         210       590

Income (loss) before income taxes                 (120)    4,521

Income tax benefit                                 100         -
                                              --------  --------

Net income (loss)                             $    (20) $  4,521
                                              ========  ========

See accompanying notes to the consolidated financial statements.

                             Page 12


                 SUN WORLD INTERNATIONAL, INC.
                    (DEBTOR-IN-POSSESSION)
          (A WHOLLY-OWNED SUBSIDIARY OF CADIZ INC.)

        CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

-------------------------------------------------------------------
                                                SIX MONTHS ENDED
                                                     JUNE 30,
($ IN THOUSANDS)                                2005       2004
-------------------------------------------------------------------

Revenues                                      $  6,809  $ 49,346
                                              --------  --------
Costs and expenses:
 Cost of sales                                   6,372    39,133
 General and administrative                      1,432     4,486
 Removal of underperforming crops                    -       608
 Depreciation and amortization                     337     2,385
                                              --------  --------

   Total costs and expenses                      8,141    46,612
                                              --------  --------

Operating profit (loss)                         (1,332)    2,734

Loss (gain) on sale of assets                       18    (1,165)

Interest (income) expense, net (contractual
 interest for 2005 and 2004, respectively,
 was $6,768 and $7,928)                           (276)      884
                                              --------  --------

Income (loss) before reorganization items
 and income taxes                               (1,074)    3,015

Reorganization items:
 Employee incentive payments                     1,655         -
 Professional fees                                 782     1,008
 Gain on sale of assets                           (538)        -
                                              --------  --------

Total reorganization items                       1,899     1,008
                                              --------  --------

Income (loss) before income taxes               (2,973)    2,007

Income tax (benefit) expense                    (5,147)       62
                                              --------  --------

Net income                                    $  2,174  $  1,945
                                              ========  ========

See accompanying notes to the consolidated financial statements.

                             Page 13


                 SUN WORLD INTERNATIONAL, INC.
                    (DEBTOR-IN-POSSESSION)
          (A WHOLLY-OWNED SUBSIDIARY OF CADIZ INC.)

           CONSOLIDATED BALANCE SHEET (UNAUDITED)

-------------------------------------------------------------------
                                             JUNE 30, DECEMBER 31,
 ($ IN THOUSANDS)                              2005       2004
-------------------------------------------------------------------

ASSETS

Current assets:
 Cash and cash equivalents                    $ 23,486  $  5,311
 Restricted cash                                 1,103     3,344
 Accounts receivable, net                            -     6,243
 Inventories                                         -    12,078
 Prepaid expenses and other                         57     1,745
                                              --------  --------
   Total current assets                         24,646    28,721

Property, plant, equipment, net                      -   104,647

Intangible assets                                    -     1,909

Other assets                                         -     6,424
                                              --------  --------

   Total assets                               $ 24,646  $141,701
                                              ========  ========

LIABILITIES AND STOCKHOLDER'S DEFICIT

Current liabilities:
 Accounts payable                             $     97  $  4,944
 Accrued liabilities                             1,041     2,993
 Income tax payable                                136         -
 Revolving credit facility                           -         -
 Long-term debt, current portion                     -       722
                                              --------  --------

   Total current liabilities                     1,274     8,659

Long-term debt                                       -         9
Deferred income taxes                                -     5,447
Other liabilities                                    -        17
                                              --------  --------

   Total liabilities not subject to
    compromise                                   1,274    14,132
                                              --------  --------

Liabilities subject to compromise under
   reorganization proceedings                   35,016   141,387

Contingencies

Stockholder's deficit:
 Common stock, $.01 par value, 300,000 shares
  authorized; 42,000 shares issued and
  outstanding                                        -         -
 Additional paid-in capital                     39,479    39,479
 Accumulated deficit                           (51,123)  (53,297)
                                              --------  --------

   Total stockholder's deficit                 (11,644)  (13,818)
                                              --------  --------

   Total liabilities and stockholder's
    deficit                                   $ 24,646  $141,701
                                              ========  ========

See accompanying notes to the consolidated financial statements.

                             Page 14


                   SUN WORLD INTERNATIONAL, INC.
                      (DEBTOR-IN-POSSESSION)
            (A WHOLLY-OWNED SUBSIDIARY OF CADIZ INC.)

         CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

--------------------------------------------------------------------
                                           SIX MONTHS ENDED JUNE 30,
($ IN THOUSANDS)                                 2005      2004
--------------------------------------------------------------------

Cash flows from operating activities:
Net income                                    $  2,174  $  1,945
Adjustments to reconcile net income to net
 cash used for operating activities:
  Depreciation and amortization                    337     2,392
  Deferred income taxes                         (5,447)        -
  Gain on disposal of assets                      (520)   (1,165)
  Removal of under performing crops                  -       608
  Compensation charge for deferred stock units       -        20
  Changes in operating assets and liabilities:
   Increase in accounts receivable                (248)  (24,289)
   Increase in inventories                      (3,655)  (11,735)
   Decrease (increase) in prepaid expenses
    and other                                      196       (49)
   (Decrease) increase in accounts payable        (945)   11,387
   (Decrease) increase in accrued liabilities   (1,888)    1,360
   Increase in income tax payable                  136         -
   Decrease in other liabilities                     -       (12)
                                              --------  --------

  Net cash used for operating activities
   before reorganization items                  (9,860)  (19,538)
                                              --------  --------

Decrease in liabilities subject to compromise
 under reorganization proceedings              (63,282)     (110)
                                              --------  --------

  Net cash used for operation activities       (73,142)  (19,648)
                                              --------  --------

Cash flows from investing activities:
Additions to property, plant and equipment        (299)   (1,597)
Additions to developing crops                     (745)   (2,031)
Proceeds from sale of assets                    90,854     2,824
Decrease in restricted cash                      2,241         -
Increase in other assets                           (55)     (148)
                                              --------  --------

  Net cash provided by (used for) investing
   activities                                   91,996      (952)
                                              --------  --------

Cash flows from financing activities:
 Principal payments on long-term debt             (679)      (61)
 Proceeds from short-term borrowings                 -    19,965
                                              --------  --------

  Net cash provided by (used for) financing
   activities                                     (679)   19,904
                                              --------  --------

Net increase (decrease) in cash and cash
 equivalents                                    18,175      (696)

Cash and cash equivalents at beginning
 of period                                       5,311     1,548
                                              --------  --------

Cash and cash equivalents at end of period    $ 23,486  $    852
                                              ========  ========

Supplemental disclosure of cash
 flow information:
  Non-cash investing and financing activities
  Credit against purchase price on sale of
   assets in partial satisfaction of First
   Mortgage Notes                             $ 40,048  $      -
                                              ========  ========

See accompanying notes to the consolidated financial statements.

                             Page 15


                        SUN WORLD INTERNATIONAL, INC.
                           (DEBTOR-IN-POSSESSION)
                 (A WHOLLY-OWNED SUBSIDIARY OF CADIZ INC.)

          CONSOLIDATED STATEMENT OF STOCKHOLDER'S DEFICIT (UNAUDITED)
--------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED JUNE 30, 2005
($ IN THOUSANDS)
--------------------------------------------------------------------------------
                                          ADDITIONAL                   TOTAL
                           COMMON STOCK    PAID-IN    ACCUMULATED  STOCKHOLDERS'
                         SHARES   AMOUNT   CAPITAL      DEFICIT       DEFICIT
                         ------   ------   -------      -------       -------

Balance as of
 December 31, 2004        42,000  $    -  $ 39,479    $ (53,297)     $ (13,818)

Net income                     -       -         -        2,174          2,174
                       ---------  ------  --------    ---------      ---------

Balance as of
 June 30, 2005            42,000  $    -  $ 39,479    $ (51,123)     $ (11,644)
                       =========  ======  ========    =========      =========

See accompanying notes to the consolidated financial statements.

                             Page 16


                 SUN WORLD INTERNATIONAL, INC.
                    (DEBTOR-IN-POSSESSION)
          (A WHOLLY-OWNED SUBSIDIARY OF CADIZ INC.)

          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - NATURE OF OPERATIONS AND REORGANIZATION UNDER CHAPTER 11
-----------------------------------------------------------------

     Founded in 1975, Sun World International, Inc. ("SWII" or
"Sun World") and its subsidiaries (collectively, the "Sun World")
operated as the wholly-owned agricultural segment of Cadiz Inc.
("Cadiz").  Prior to the sale discussed below, Sun World was an
integrated agricultural operation that owned approximately 17,000
acres of land, primarily located in two major growing areas of
California: the San Joaquin Valley and the Coachella Valley.
Fresh produce, including table grapes, stonefruit, citrus,
peppers and watermelons was marketed, packed and shipped to food
wholesalers and retailers located throughout the United States
and to more than 30 foreign countries.  Sun World owned and
operated two cold storage and packing facilities located in
California.

     On January 30, 2003 (the "Petition Date"), SWII and certain
of its subsidiaries (Sun Desert Inc., Coachella Growers, and Sun
World/Rayo) filed voluntary petitions for relief under Chapter 11
of the Bankruptcy Code. The filing was made in the United States
Bankruptcy Court, Central District of California, Riverside
Division ("Bankruptcy Court").  Included in the Consolidated
Financial Statements are subsidiaries operated outside the United
States, which have not commenced Chapter 11 cases or other
similar proceedings elsewhere, and are not debtors.  The assets
and liabilities of such non-filing subsidiaries are not
considered material to the Consolidated Financial Statements.
SWII sought bankruptcy protection in order to access a seasonal
financing package of up to $40 million to provide working capital
through the 2003-2004 growing seasons.

     As a debtor-in-possession, Sun World is authorized to
continue to operate as an ongoing business, but may not engage in
transactions outside the ordinary course of business without the
approval of the Bankruptcy Court.  Under the Bankruptcy Code,
actions to collect pre-petition indebtedness, as well as most
other pending litigation, are stayed and other contractual
obligations against Sun World may not be enforced.  In addition,
under the Bankruptcy Code, Sun World may assume or reject
executory contracts, including lease obligations.  Parties
affected by these rejections may file claims with the Court in
accordance with the reorganization process.  Absent an order of
the Court, substantially all pre-petition liabilities are subject
to settlement under a plan of reorganization to be voted upon by
creditors and equity holders and approved by the Bankruptcy
Court.

     The four Sun World entities referred to above are the joint
proponents of the Debtors' Joint Plan of Reorganization Dated
November 24, 2003 (the "Plan"). The Plan provided for the
restructuring of Sun World's balance sheet by providing for Sun
World to issue equity interests in the Reorganized Sun World to
the holders of its First Mortgage Notes in full satisfaction of
their mortgage note claims; for the payment in full of
convenience claims and trade claims; and for Sun World to issue
equity interests in the Reorganized Sun World to entities holding
certain other unsecured claims in full satisfaction of those
claims.  The holders of Sun World's secured First Mortgage Notes
were unable to reach agreement on various Plan issues, and the
Plan as presented was not confirmable. Thereafter, following an
extensive marketing process, Sun World entered into, subject to
Court approval, an asset purchase agreement ("APA") in December
2004 with BDCM Opportunity Fund, L.P. ("BDCM""), a major holder
of the First Mortgage Notes, under which BDCM would acquire
substantially all of Sun World's assets

                             Page 17

subject to overbids at a Court authorized auction. Following the
auction on January 13, 2005, BDCM was declared the winning bidder
and the Court approved on January 14, 2005, an amended APA under
which BDCM agreed to acquire substantially all of Sun World's assets
in exchange for cash and credit consideration of $127.8 million, plus
payment and assumption of certain liabilities totaling an estimated
$14 million, including the trade claims, which resulted in a gain on
sale of assets of approximately $0.5 million.  Thereafter, BDCM
assigned its rights under the APA to Sun World International LLC
("SW LLC"), a subsidiary of BDCM.  The agreement with SW LLC
closed on February 25, 2005. Sun World has filed in May 2005 an
amended Plan to distribute the remaining consideration left in
Sun World (approximately $25 million after interim
distributions/credits to the holders of First Mortgage Notes of
approximately $78 million upon closing and an additional $25
million in June 2005 as authorized by the Court).

     The financial statements of Sun World have been prepared
using accounting principles applicable to a going concern, which
assumes realization of assets and settlement of liabilities in
the normal course of business and in accordance with Statement of
Position 90-7, "Financial Reporting by Entities in Reorganization
Under the Bankruptcy Code".  Accordingly, all pre-petition
liabilities subject to compromise have been segregated in the
Consolidated Balance Sheet and classified as "Liabilities subject
to compromise under reorganization proceedings", at the estimated
amount of allowable claims.  The financial statements of Sun
World do not purport to reflect or to provide for all of the
consequences of an ongoing Chapter 11 reorganization.
Specifically, but not all-inclusive, the financial statements of
Sun World do not present: (a) the amount which will ultimately be
paid to settle liabilities and contingencies which may be allowed
in the Chapter 11 reorganization, or (b) the effect of changes
which may be made resulting from a Plan of Reorganization.


NOTE 2 - BASIS OF PRESENTATION
------------------------------

     The Consolidated Financial Statements have been prepared by
Sun World International, Inc. and its subsidiaries, collectively
referred to as "Sun World" without audit and should be read in
conjunction with the Sun World Consolidated Financial Statements
and notes thereto included in the Cadiz Inc. Form 10-K for the
year ended December 31, 2004.  The foregoing Consolidated
Financial Statements include all adjustments, consisting only of
normal recurring adjustments, which Sun World considers necessary
for a fair presentation.

     Since the Chapter 11 bankruptcy filing, Sun World has
applied the provisions of SOP 90-7, which does not significantly
change the application of accounting principles generally
accepted in the United States of America; however, it does
require that the financial statements for periods including and
subsequent to filing the Chapter 11 petition distinguish
transactions and events that are directly associated with the
reorganization from the ongoing operations of the business.  As
disclosed in the Consolidated Statements of Operations,
reorganization items for the six months ended June 30, 2005,
consist of professional fees directly associated with the
reorganization of $782,000, Court-approved bonuses paid to
certain employees related to the successful sale of Sun World's
assets of $1,655,000, and the gain on sale of Sun World's assets
of $538,000.  For the six months ended June 30, 2004,
reorganization items consist of professional fees directly
associated with the reorganization of $1,008,000.

                             Page 18

     See Note 2 to the Sun World Consolidated Financial
Statements included in the Cadiz Inc. latest Form 10-K for a
discussion of Sun World's accounting policies.


NOTE 3 - INVENTORIES
--------------------

     Inventories consist of the following (dollars in thousands):

                                           JUNE 30, DECEMBER 31,
                                             2005      2004
                                             ----      ----
     Growing crops                         $      -  $  9,892
     Harvested product                            -       194
     Materials and supplies                       -     1,992
                                           --------  --------
                                           $      -  $ 12,078
                                           ========  ========


NOTE 4 - LIABILITIES SUBJECT TO COMPROMISE UNDER REORGANIZATION
         PROCEEDINGS
---------------------------------------------------------------

     Under bankruptcy law, actions by creditors to collect
indebtedness Sun World owed prior to the Petition Date are stayed
and certain other pre-petition contractual obligations may not be
enforced against Sun World.  Sun World received approval from the
Bankruptcy Court to pay certain pre-petition liabilities
including employee salaries and wages, benefits, other employee
obligations, and certain grower liabilities entitled to trust
protection under the Perishable Agricultural Commodities Act
(PACA).  Except for certain secured debt obligations, all pre-
petition liabilities have been classified as "Liabilities subject
to compromise under reorganization proceedings" in the
Consolidated Balance Sheet.  Adjustments to the claims may result
from negotiations, payments authorized by Bankruptcy Court order,
rejection of executory contracts including leases, or other
events.

     Pursuant to an order of the Bankruptcy Court, Sun World
mailed notices to all known creditors that the deadline for
filing proofs of claim with the Court was August 29, 2003.  An
estimated 340 claims were filed as of August 29, 2003.  Amounts
that Sun World has recorded are in many instances different from
amounts filed by Sun World's creditors.  Differences between
amounts scheduled by Sun World and claims by creditors are being
investigated and resolved in connection with our claims
resolution process.  Until the process is complete, the ultimate
number and amount of allowable claims cannot be ascertained.  The
ultimate resolution of these claims will be based upon the final
plan of reorganization.

     Pursuant to the APA (see Note 1), holders of trade claims
totaling an estimated $3.0 million entered into a trade vendor
agreement with SW LLC  and SW LLC assumed those claims upon
closing of the asset purchase. In addition, as further described
in Note 5 approximately $103 million in interim
distributions/credits to the holders of First Mortgage Notes were
made as authorized by the Court.

                             Page 19

     Liabilities subject to compromise under reorganization
proceedings are summarized as follows (dollars in thousands):

                                           JUNE 30, DECEMBER 31,
                                             2005      2004
                                             ----      ----
     Accounts payable                      $    787  $  4,092
     Due to parent company                   13,500    13,500
     Long-term debt and accrued interest     20,729   123,795
                                           --------  --------

          Total                            $ 35,016  $141,387
                                           ========  ========


NOTE 5 - SALE OF ASSETS
-----------------------

     On February 25, 2005, Sun World completed the sale of
substantially all of its assets to SW LLC (see Note 1).  The sale
resulted in a gain of $538,000 calculated as follows (in 000s):

     Cash proceeds to Sun World            $ 49,684
     Credit/interim distribution to
      First Mortgage Notes                   78,066
                                           --------
                                            127,750
     Liabilities paid by buyer at closing     5,689
     Liabilities assumed by buyer             8,572
                                           --------
     Total purchase price                   142,011

     Assets sold:
       Cash                                    (833)
       Restricted cash                       (3,344)
       Accounts receivable, net              (6,545)
       Inventory                            (16,345)
       Prepaid expenses and other            (1,492)
       Property, plant, and equipment, net (104,631)
       Intangible assets                     (1,912)
       Other assets                          (6,371)
                                           --------

     Gain on sale of assets                $    538
                                           ========

     As discussed in Note 4, in connection with the sale of
assets, the Court authorized an interim distribution of a portion
of the sales proceeds to the First Mortgage Note holders.  The
interim distribution was made in the form of (i) a credit to the
buyer of $40,048,000 in partial satisfaction of the Notes held by
the buyer and (ii) a prorata distribution of $38,018,000 at
closing to the remaining Note holders.  An additional interim
distribution of $25,000,000 was made to the First Mortgage Note
holders as authorized by the Court in June 2005.

     As a result, the outstanding principal balance and accrued
interest of the First Mortgage Notes, as included in Liabilities
Subject to Compromise, consist of the following (dollars in
thousands):

                             Page 20

                                           JUNE 30, DECEMBER 31,
                                             2005      2004
                                             ----      ----
     Balance outstanding                   $ 15,707  $118,773


NOTE 6 - INCOME TAXES
---------------------

     The income tax benefit for the six months ended June 30,
2005 relates principally to the tax gain on the sale of assets
and consists of estimated federal and state alternative minimum
taxes of $275,000 and a deferred tax benefit of $5,447,000 due to
the reduction in the deferred tax valuation allowance for the
utilization of net operating loss carryforwards.

                             Page 21


                        CADIZ INC.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS

     In connection with the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, the following
discussion contains trend analysis and other forward-looking
statements.  Forward-looking statements can be identified by the
use of words such as "intends", "anticipates", "believes",
"estimates", "projects", "forecasts", "expects", "plans" and
"proposes".  Although we believe that the expectations reflected
in these forward-looking statements are based on reasonable
assumptions, there are a number of risks and uncertainties that
could cause actual results to differ materially from these
forward-looking statements.  These include, among others, our
ability to maximize value from our Cadiz, California land and
water resources; and our ability to obtain new financings as
needed to meet our ongoing working capital needs.  See additional
discussion under the heading "Certain Trends and Uncertainties"
in Item 7 of our Annual Report on Form 10-K for the year ended
December 31, 2004.

OVERVIEW

     Our primary asset consists of three separate properties,
each of which consists of largely contiguous land in eastern San
Bernardino County, California.  This land position totals
approximately 45,000 acres.  Virtually all of this land is
underlain by high-quality groundwater resources with demonstrated
potential for various applications, including water storage and
supply programs and agricultural, municipal, recreational, and
industrial development.  Two of the three properties are located
in proximity to the Colorado River Aqueduct, the major source of
imported water for southern California.  The third property is
located near the Colorado River.

     The value of these assets derives from a combination of
population increases and limited water supplies throughout
southern California.  In addition, most of the major population
centers in southern California are not located where significant
precipitation occurs, requiring the importation of water from
other parts of the state.  We therefore believe that a
competitive advantage exists for those companies that possess or
can provide high quality, reliable, and affordable water to major
population centers.

     To this end in 1997 we commenced discussions with the
Metropolitan Water District of Southern California
("Metropolitan") in order to develop a long-term agreement for a
joint venture groundwater storage and supply program on our land
in the Cadiz and Fenner valleys of eastern San Bernardino County
(the "Cadiz Program").  Under the Cadiz Program, surplus water
from the Colorado River would be stored in the aquifer system
underlying our land during wet years.  When needed, the stored
water, together with indigenous groundwater, would be returned to
the Colorado River Aqueduct for distribution to Metropolitan's
member agencies throughout six southern California counties.

     During the next several years, we engaged in extensive
negotiations with Metropolitan concerning the Cadiz Program and
actively pursued and received substantially all of the various
permits required to construct and operate the project.  However,
in October 2002, Metropolitan's Board voted to not proceed with
the Cadiz Program.

     Notwithstanding Metropolitan's actions in 2002, we expect to
be able to use our land assets and related water resources to
participate in a broad variety of water storage and supply,
exchange, and conservation programs with public agencies and
other parties.  Southern

                             Page 22

California's need for water storage and supply programs has not abated.
We believe there are many different scenarios to maximize the value
of this water resource, all of which are under current evaluation.

     We expect that these alternative scenarios will have
different capital requirements and implementation periods than
those previously established for the Cadiz Program.  Therefore,
following Metropolitan's actions in 2002, we have entered into a
series of agreements with our senior secured lender, ING Capital
LLC ("ING") pursuant to which we reduced our debt to ING to $25
million and extended the maturity date of the ING debt until
March 31, 2010, conditioned upon a further principal reduction of
$10 million on or before March 31, 2008.  In addition, we have
raised approximately $35 million in equity through private
placements completed in 2003 and 2004.

     Further, in February 2005, our wholly owned subsidiary Sun
World International, Inc. ("Sun World") completed the sale of
substantially all of its assets. Sun World had entered bankruptcy
proceedings in January 30, 2003, following which the financial
statements of Sun World are no longer consolidated with ours.

     With the implementation of these steps, we have been able to
retain ownership of all of our assets relating to our water
programs and to obtain working capital needed to continue our
efforts to develop our water programs, albeit with the
divestiture of our interests in Sun World's assets.  Because many
of our pre-existing common stockholders have participated in the
2003 and 2004 private placements, our base of common stockholders
remains largely the same as before these placements.

     We remain committed to our water programs and we continue to
explore all opportunities for development of these assets.  We
cannot predict with certainty which of these various
opportunities will ultimately be utilized.

RESULTS OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2005 COMPARED TO THREE MONTHS ENDED JUNE 30, 2004
-----------------------------------------------------------------------------

     We have not received significant revenues from our water
resource activity to date.  As a result, we have historically
incurred a net loss from operations.  We had revenues of $15
thousand for the three months ended June 30, 2005 and $9 thousand
for the three months ended June 30, 2004.  Our net loss totaled
$12.6 million (including a $11.2 million charge for shares and
options granted) for the three months ended June 30, 2005
compared to $2.7 million for the three months ended June 30,
2004.

     Our primary expenses are our ongoing overhead costs (i.e.
general and administrative expense), our interest expense and the
compensation costs resulting from the grant of shares and options
under the Cadiz 2003 Management Equity Incentive Plan and the
2004 Management Bonus Plan.

     REVENUES  Cadiz had revenues of $15 thousand for the three
months ended June 30, 2005 and $9 thousand for the three months
ended June 30, 2004 resulting from increased rental income
attributable to the lease of additional Cadiz Ranch acreage to a
third party.

                             Page 23

     GENERAL AND ADMINISTRATIVE EXPENSES.   General and
administrative expenses during the three months ended June 30,
2005 totaled $877 thousand compared to $479 thousand for the
three months ended June 30, 2004. The increase in general and
administrative expenses is primarily due to higher legal,
consulting and stock exchange listing fees in the three months
ended June 30, 2005.

     COMPENSATION COSTS FROM STOCK AND OPTION AWARDS.  During the
three months ended June 30, 2005 the Company issued shares of
common stock and stock options to senior employees under the
Cadiz 2003 Management Equity Incentive Plan and the Cadiz 2004
Management Bonus Plan.  Shares and options issued under the 2003
Management Equity Incentive Plan vest over varying periods from
the date of issue to December 2006.  Shares issued under the 2004
Management Bonus Plan vested immediately.  The issuance of shares
and options under these Plans results in a charge to the
Company's earnings based on the value of the common stock at the
time of the grant and the excess of the market price over the
option exercise price at the time of their award.  This charge
will be recorded over the vesting period in proportion to the
quantities vested.  The value of shares and options vested during
the three month period ended June 30, 2005 has been recorded as a
cost during the period in the amount of $11.2 million.

     DEPRECIATION AND AMORTIZATION.  Depreciation and
amortization expense for the three months ended June 30, 2005 and
2004 totaled $67 thousand and $131 thousand, respectively.  We
incurred depreciation expense for permanent and developing crops
in the 2004 period.  These permanent and developing crops were
written off in the last quarter of 2004 and were not subject to
further depreciation in 2005, thereby resulting in a decrease in
depreciation and amortization expense for the 2005 period.

     INTEREST EXPENSE, NET.  Net interest expense totaled $0.5
million during the three months ended June 30, 2005, compared to
$2.1 million during the same period in 2004.  The following table
summarizes the components of net interest expense for the two
periods (in thousands):

                                           THREE MONTHS ENDED
                                                JUNE 30,
                                             2005      2004
                                             ----      ----
      Interest on outstanding debt         $    504  $  1,105
      Amortization of financing costs             7     1,027
      Interest income                           (15)       (9)
                                           --------  --------

                                           $    496  $  2,123
                                           ========  ========

     The decrease in net interest expense is due to a combination
of a reduction in the outstanding balance of the ING loan and
lower interest rates on that loan.  In addition, during 2005
there was reduced amortization of financing costs, that included
both debt discount and borrowing fees, as the prior balance was
written off at the time of the November 30, 2004 amendment to the
terms and conditions of the ING loan. The financing costs of the
November 30, 2004 amended terms and conditions of the ING loan
are lower and are being amortized over a longer period.

                             Page 24

      The financing costs for the November 30, 2004 amended terms
and conditions of the ING loan were $150 thousand.

     INCOME TAXES.  In February 2005, our wholly owned subsidiary
Sun  World International Inc.("Sun World") completed the sale  of
substantially all of its assets.

     The sale generated a total gain at Sun World of
approximately $11.3 million and $45.2 million for federal and
state income tax purposes, respectively.  For regular income tax
purposes this gain is not expected to generate a tax liability,
in that Sun World and Cadiz file a consolidated tax return and
the companies have sufficient tax attributes to offset the gain
from Sun World.  However, because of state apportionment factors
and the Alternative Minimum Tax (AMT) rules, Cadiz is expected to
have a tax liability of approximately $56 thousand that has been
accrued as of June 30, 2005. This estimate represents a reduction
from the previous estimate recorded by the Company at March 31,
2005 resulting in a $49 thousand reduction in the provision for
income taxes in the three months ended June 30, 2005.  The actual
tax liability will vary from this estimate based upon taxable
income generated during 2005.

SIX MONTHS ENDED JUNE 30, 2005 COMPARED TO SIX MONTHS ENDED JUNE 30, 2004
-------------------------------------------------------------------------

     We had revenues of $30 thousand for the six months ended
June 30, 2005 and $20 thousand for the six months ended June 30,
2004.  Our net loss totaled $14.2 million for the six months
ended June 30, 2005 compared to $5.5 million for the six months
ended June 30, 2004.

     Our primary expenses are our ongoing overhead costs (i.e.
general and administrative expense), our interest expense and the
compensation costs resulting from the grant of shares and options
under the Cadiz 2003 Management Equity Incentive Plan and the
2004 Management Bonus Plan.

     REVENUES.   We had revenues of $30 thousand for the six
months ended June 30, 2005 and $20 thousand for the six months
ended June 30, 2004 resulting from increased rental income
attributable to the lease of additional Cadiz Ranch acreage to a
third party.

     GENERAL AND ADMINISTRATIVE EXPENSES.  General and
administrative expenses for the six months ended June 30, 2005
totaled $1.8 million compared to $1.0 million for the same 2004
period. The increase in general and administrative expenses is
primarily due to higher legal, audit,consulting and stock
exchange listing fees in the six months ended June 30, 2005.

     COMPENSATION COSTS FROM STOCK AND OPTION AWARDS.  During the
three months ended June 30, 2005 the Company issued shares of
common stock and stock options to senior employees under the
Cadiz 2003 Management Equity Incentive Plan and the Cadiz 2004
Management Bonus Plan.  Shares and options issued under the 2003
Management Equity Incentive Plan vest over varying periods from
the date of issue to December 2006.  Shares issued under the 2004
Management Bonus Plan vested immediately.  The issuance of shares
and options under these Plans results in a charge to the
Company's earnings based on the value of the common stock at the
time of the grant and the excess of the market price over the
option exercise price at the time of their award.  This charge
will be recorded over the vesting period in proportion to the
quantities vested.  The value of shares and options vested during
the

                             Page 25

three month period ended June 30, 2005 has been recorded as a
cost during the period in the amount of $11.2 million.

     DEPRECIATION AND AMORTIZATION EXPENSE. Depreciation and
amortization expense for the six months ended June 30, 2005
totaled $134 thousand compared to $262 thousand during the same
period in 2004. We incurred depreciation expense for permanent
and developing crops in the 2004 period.  These permanent and
developing crops were written off in the last quarter of 2004 and
were not subject to further depreciation in 2005, thereby
resulting in a decrease in depreciation and amortization expense
for the 2005 period.

     INTEREST EXPENSE, NET.  Net interest expense totaled $0.9
million during the six months ended June 30, 2005 as compared to
$4.3 million in 2004.  The following table summarizes the
components of net interest expense for the two periods (in
thousands):

                                            SIX MONTHS ENDED
                                                JUNE 30,
                                             2005      2004
                                             ----      ----
     Interest on outstanding debt - Cadiz     1,018     2,244
     Amortization of financing costs             14     2,054
     Interest income                            (78)      (18)
                                           --------  --------

                                           $    954  $  4,280
                                           ========  ========

     The decrease in net interest expense is due to a combination
of a reduction in the outstanding balance of the ING loan and
lower interest rates on that loan.  In addition, during 2005
there was reduced amortization of financing costs that included
both debt discount and borrowing fees, as the prior balance was
written off at the time of the November 30, 2004 amendment to the
terms and conditions of the ING loan. The financing costs of the
November 30, 2004 amended terms and conditions of the ING loan
are lower and are being amortized over a longer period.

     The financing costs for the November 30, 2004 amended terms
and conditions of the ING loan were $150 thousand.

     INCOME TAXES  In February 2005, our wholly owned subsidiary
Sun World International Inc.("Sun World") completed the sale of
substantially all of its assets.

     The sale generated a total gain at Sun World of
approximately $11.3 million and $45.2 million for federal and
state income tax purposes, respectively.  For regular income tax
purposes this gain is not expected to generate a tax liability,
in that Sun World and Cadiz file a consolidated tax return and
the companies have sufficient tax attributes to offset the gain
from Sun World.  However, because of state apportionment factors
and the Alternative Minimum Tax (AMT) rules, Cadiz is expected to
have a tax liability of approximately $56 thousand that has been
accrued as of June 30, 2005. The actual tax liability will vary
from this estimate based upon taxable income generated during
2005.

                             Page 26

LIQUIDITY AND CAPITAL RESOURCES

(A)  CURRENT FINANCING ARRANGEMENTS
     ------------------------------

     As we have not received significant revenues from our water
resource activity to date, we have been required to obtain
financing to bridge the gap between the time water resource
development expenses are incurred and the time that revenue will
commence. Historically, we have addressed these needs primarily
through secured debt financing arrangements with our lenders,
private equity placements and the exercise of outstanding stock
options.

     Subsequent to the vote of Metropolitan's Board in October
2002 to not proceed with the Cadiz Program and Sun World's
January 2003 bankruptcy filing, we have worked with our primary
secured lender, ING Capital LLC, to structure our debt in a way
which would allow us to continue our development of the Cadiz
Program.  We believe that we have accomplished this goal with a
series of agreements with ING, the most recent of which concluded
in November 2004.

     In November 2004 we entered into our most recent series of
agreements with ING which provided for the repayment in full of
our senior term loan facility with ING, the reduction to $25
million of the outstanding principal balance under our existing
revolving credit facility; and amendments to the terms and
conditions of our revolving credit facility with ING in order to
extend the maturity date of the debt until March 31, 2010,
conditioned upon a further principal reduction of $10 million on
or before March 31, 2008, and reduce the interest rate through
March 31, 2008 on the new outstanding balance to 4% cash plus 4%
PIK (increasing to 4% cash plus 6% PIK for interest periods
commencing on and after April 1, 2008).  Additional details
concerning the terms of this November 2004 restructuring are
included in our Form 10-K for the year ended December 31, 2004.

     As we continue to actively pursue our business strategy,
additional financing specifically in connection with our water
programs will be required. As the parties anticipated this need
at the time of our credit restructuring, the restrictive
covenants in our credit facility were crafted in a way that, in
our view, should not materially limit our ability to undertake
debt or equity financing in order to finance our water
development activities.

     We have no outstanding credit facilities or preferred stock
other than the Series F preferred stock held by ING as described
in our 10-K for the year ended December 31, 2004.

     CASH USED FOR OPERATING ACTIVITIES.  Cash used for operating
activities was $1.8 million for the six months ended June 30,
2005, as compared to $2.1 million for the six months ended June
30, 2004.  The decreased cash usage is primarily due to a $2.6
million smaller net loss before the non-cash compensation charge
of $11.2 million in the 2005 period and the reduction in prepaid
borrowing expense for the payment of interest in the 2005 period.
This decrease was partly offset by a $2.2 million reduction in
non-cash depreciation and amortization.

     CASH USED FOR INVESTING ACTIVITIES.  During the six months
ended June 30, 2005, $51 thousand was invested in assets.  During
the six months ended June 30, 2004, $0.7 million was

                             Page 27

paid from the restricted cash account for the cash portion of interest
due on the ING loan at March 31, 2004.

OUTLOOK

    SHORT TERM OUTLOOK.  The proceeds of our 2003 and 2004
private placements in which we raised approximately $35 million
have provided us with sufficient cash to meet our expected
working capital needs for current operations until the Company
will need to raise additional capital in order to fund the $10
million repayment of its borrowing from ING required to be made
by March 2008 in order to obtain a further two year extension of
the maturity date of the ING loan.  See "Long Term Outlook",
below. Approximately $12.7 million of the proceeds of our
November 2004 private placement were used to reduce the
principal balance, which included approximately $2.7 million in
interest payable in kind ("PIK"), owed to ING  under our ING
credit facilities to $25 million.  40 Units in the 2004 private
placement were issued to ING in consideration of a $2.4 million
credit to be applied against obligations under the Company's $25
million borrowing from the lender.  The remainder of the
proceeds from the placements will be used to meet our ongoing
working capital needs.

     LONG TERM OUTLOOK.  In the longer term, the current maturity
date of our loan with ING is March 2008, although we may obtain a
further extension of this loan by making a $10 million repayment.
Otherwise, our working capital needs will be determined based
upon the specific measures we pursue in the development of our
water resources.   We will evaluate the amount of cash needed,
and the manner in which such cash will be raised, on an ongoing
basis. We may meet any such future cash requirements through a
variety of means to be determined at the appropriate time. Such
means may include equity or debt placements, or the sale or other
disposition of assets.  Equity placements would be undertaken
only to the extent necessary so as to minimize the dilutive
effect of any such placements upon our existing stockholders.

RECENT ACCOUNTING PRONOUNCEMENTS

     In December 2004, the Financial Accounting Standards Board
issued SFAS no. 123(R) (revised 2004), "Share-Based Payment"
which amends SFAS Statement 123 and will be effective for the
Company beginning January 1, 2006. The new standard will require
the Company to recognize compensation costs in its financial
statements in an amount equal to the fair value of share-based
payments granted to employees and directors. The Company is
currently evaluating how it will adopt the standard and
evaluating the effect that the adoption of SFAS 123(R) will have
on its financial position and results of operations.

CERTAIN KNOWN CONTRACTUAL OBLIGATIONS
-------------------------------------

                               PAYMENTS DUE BY PERIOD
CONTRACTUAL             LESS THAN
OBLIGATIONS    TOTAL      1 YEAR   1-3 YEARS   4-5 YEARS   AFTER 5 YEARS
-----------    -----    ---------  ---------   ---------   -------------

Long term debt
 obligations  $ 25,339  $      -   $ 10,000    $ 15,339      $      -

Operating
 leases             94        94          -           -             -
              --------  --------   --------    --------      --------

              $ 25,433  $     94   $ 10,000    $ 15,339      $      -
              ========  ========   ========    ========      ========

                             Page 28


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Information about market risks for the six months ended June
30, 2005 does not differ materially from that discussed under
Item 7A of Cadiz' Annual Report on Form 10-K for the year ended
December 31, 2004.


ITEM 4.  CONTROLS AND PROCEDURES

     We carried out an evaluation, under the supervision and with
the participation of our management, including our Chairman,
Chief Executive Officer and Chief Financial Officer (Principal
Executive and Financial Officer), of the effectiveness of the
design and operation of our disclosure controls and procedures as
of June 30, 2005. Based upon, and as of the date of that
evaluation, our Chairman, Chief Executive Officer and Chief
Financial Officer concluded that these disclosure controls and
procedures are effective in timely alerting him to material
information relating to Cadiz (including our consolidated
subsidiaries) required to be included in our periodic Securities
and Exchange Commission filings. There was no significant change
in our internal control over financial reporting that occurred
during the most recent fiscal quarter that materially affected,
or is reasonably likely to affect, our internal control over
financial reporting, and no corrective actions with regard to
significant deficiencies or weaknesses.


PART II  -  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

     See "Legal Proceedings" included in the Company's latest
Form 10-K for a complete discussion.

     There are no other material pending legal proceedings to
which we are a party or of which any of our property is the
subject.


ITEM 2.  CHANGES IN SECURITIES, USE OF PROCEEDS AND ISSUER
         PURCHASES OF EQUITY SECURITIES

      Not applicable.


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

      Not applicable.


ITEM 4.  SUBMISSION OF MATTER TO A VOTE OF SECURITY HOLDERS

     Not applicable.

                             Page 29

ITEM 5.  OTHER INFORMATION

     Not applicable.


ITEM 6.  EXHIBITS

     The following exhibits are filed or incorporated by
reference as part of this Quarterly Report on Form 10-Q.

        31.1  Certification of Keith Brackpool, Chairman,
              Chief Executive Officer and Chief Financial Officer
              of Cadiz Inc. pursuant to Section 302 of the
              Sarbanes-Oxley Act of 2002

        32.1  Certification of Keith Brackpool, Chairman,
              Chief Executive Officer and Chief Financial Officer
              of Cadiz Inc. pursuant to 18 U.S.C. Section 1350,
              as adopted pursuant to Section 906 of the Sarbanes-
              Oxley Act of 2002

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.


CADIZ INC.


By: /s/ Keith Brackpool                            August 12, 2005
    ------------------------------------------     ----------------
    Keith Brackpool, Chairman of the Board and     Date
    Chief Executive and Financial Officer

                             Page 30