Voters defeat Proposition 9, the Peripheral Canal initiative, by a 3-2 margin. Floods swell the Tulare Lake bottom, drowning growers such as Salyer and Boswell in losses. Salyer officials say they and Boswell spent millions fighting the flood. Congress passes a reclamation reform act, limiting taxpayer-subsidized water rates to farms no larger than 960 acres. Farmers are given time to sell off excess land as federal officials struggle to write rules implementing the law.
Some farmers break holdings into trusts for relatives eligible for cheaper water.
Boswell's libel lawsuit is dismissed from court. 1984 Fisher retires. James W. Boswell, son of J.G. II, succeeds him. The company branches into non-ag areas, such as residential developments in Walnut Creek, San Diego County and Colorado. Boswell agrees to provide cash for Phytogen's research and development arm, which looks for ways to improve crops.