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<DATE-CHANGED>19920602
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<TEXT>

                          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 September 30, 2004

                               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 October 31, 2004, the Registrant had 6,612,674 shares of
common stock, par value $0.01 per share, outstanding.



FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2004            PAGE
----------------------------------------------------------------------

PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

     CADIZ INC. CONSOLIDATED FINANCIAL STATEMENTS

     Statement of Operations for the three months ended September
     30, 2004 and 2003. . . . . . . . . . . . . . . . . . . . . . . .1

     Statement of Operations for the nine months ended September
     30, 2004 and 2003 . . . . . . . . . . . . . . . . . . . . . . . 2

     Balance Sheet as of September 30, 2004 and December 31, 2003. . 3

     Statement of Cash Flows for the nine months ended September
     30, 2004 and 2003. . . . . . . . . . . . . . . . . . . . . . . .4

     Statement of Stockholders' Equity for the nine months ended
     September 30, 2004. . . . . . . . . . . . . . . . . . . . . . . 5

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

     SUN WORLD INTERNATIONAL, INC. CONSOLIDATED FINANCIAL STATEMENTS

     Statement of Operations for the three months ended September 30,
     2004 and 2003. . . . . . . . . . . . . . . . . . . . . . . . . 14

     Statement of Operations for the nine months ended September 30,
     2004 and 2003. . . . . . . . . . . . . . . . . . . . . . . . . 15

     Balance Sheet as of September 30, 2004 and December 31, 2003. .16

     Statement of Cash Flows for the nine months ended September 30,
     2004 and 2003. . . . . . . . . . . . . . . . . . . . . . . . . 17

     Statement of Stockholder's Equity for the nine months ended
     September 30, 2004. . . . . . . . . . . . . . . . . . . . . . .18

     Notes to the Consolidated Financial Statements. . . . . . . . .19


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS. . . . . . . . . . . . . . . . . 23

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.32

ITEM 4.  CONTROLS AND PROCEDURES. . . . . . . . . . . . . . . . . . 32


PART II - OTHER INFORMATION. . . . . . . . . . . . . . . . . . . . .32

                            Page i


                            CADIZ INC.

         CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

------------------------------------------------------------------
                                             FOR THE THREE MONTHS
                                             ENDED SEPTEMBER 30,
($ IN THOUSANDS EXCEPT PER SHARE DATA)          2004      2003
------------------------------------------------------------------

Revenues                                     $      12  $      19
                                             ---------  ---------
Costs and expenses:
 Cost of sales                                       -        174
 General and administrative                        636      1,378
 Depreciation and amortization                     132        133
                                             ---------  ---------

Total costs and expenses                           768      1,685
                                             ---------  ---------

Operating loss                                    (756)    (1,666)

Interest expense, net                            2,138        820
                                             ---------  ---------

Net loss                                        (2,894)    (2,486)

Less:  Preferred stock dividends                     -        281
       Imputed dividend on preferred stock           -        246
                                             ---------  ---------

Net loss applicable to common stock          $  (2,894) $  (3,013)
                                             =========  =========
Basic and diluted net loss per common share  $   (0.44) $   (1.32)
                                             =========  =========
Basic and diluted weighted average shares
 outstanding                                     6,613      2,290
                                             =========  =========

See accompanying notes to the consolidated financial statements.

                            Page 1



                            CADIZ INC.

          CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

------------------------------------------------------------------
                                             FOR THE NINE MONTHS
                                             ENDED SEPTEMBER 30,
($ IN THOUSANDS EXCEPT PER SHARE DATA)         2004       2003
------------------------------------------------------------------

Revenues                                     $      32  $   3,162
                                             ---------  ---------

Costs and expenses:
 Cost of sales                                       -      2,903
 General and administrative                      1,730      3,758
 Write off of investment in subsidiary               -        195
 Reorganization costs                                -        655
 Depreciation and amortization                     394        612
                                             ---------  ---------

 Total costs and expenses                        2,124      8,123
                                             ---------  ---------

Operating loss                                  (2,092)    (4,961)

Interest expense, net                            6,341      3,592
                                             ---------  ---------

Net loss                                        (8,433)    (8,553)

Less: Preferred stock dividends                      -        844
      Imputed dividend on preferred stock            -        738
                                             ---------  ---------

Net loss applicable to common stock          $  (8,433) $ (10,135)
                                             =========  =========

Basic and diluted net loss per common share  $   (1.28) $   (4.85)
                                             =========  =========

Basic and diluted weighted average shares
 outstanding                                     6,591      2,091
                                             =========  =========

See accompanying notes to the consolidated financial statements.

                            Page 2




                                 CADIZ INC.

                  CONSOLIDATED BALANCE SHEET (UNAUDITED)

--------------------------------------------------------------------
                                          SEPTEMBER 30, DECEMBER 31,
($ IN THOUSANDS)                               2004       2003
--------------------------------------------------------------------

ASSETS
Current assets:
 Cash and cash equivalents                   $   1,490  $   3,422
 Prepaid expenses and other                        319        248
                                             ---------  ---------

      Total current assets                       1,809      3,670

Property, plant, equipment and water
 programs, net                                  39,128     39,514
Goodwill                                         3,813      3,813
Restricted cash                                    697      2,142
Other assets                                       154        387
                                             ---------  ---------

                                             $  45,601  $  49,526
                                             =========  =========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
 Accounts payable                            $     583  $     857
 Accrued liabilities                               210      1,545
 Long-term debt, current portion                36,006          -
                                             ---------  ---------

      Total current liabilities                 36,799      2,402

Long-term debt                                       -     30,253
Other liabilities                                   14        654

Commitments and contingencies

Stockholders' equity:
 Series F convertible preferred stock -
  $.01 par value:
  100,000 shares authorized; shares
   issued and outstanding - 100,000 at
   September 30, 2004 and December 31, 2003          1          1

 Common stock - $.01 par value;
  70,000,000 shares authorized; shares
  issued and outstanding - 6,612,674 at
  September 30, 2004 and 6,471,385 at
  December 31, 2003                                 66         65

 Additional paid-in capital                    185,977    184,974
 Accumulated deficit                          (177,256)  (168,823)
                                             ---------  ---------

 Total stockholders' equity                      8,788     16,217
                                             ---------  ---------

                                             $  45,601  $  49,526
                                             =========  =========

See accompanying notes to the consolidated financial statements.

                            Page 3




                            CADIZ INC.

        CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

------------------------------------------------------------------
                                             FOR THE NINE MONTHS
                                             ENDED SEPTEMBER 30,
 ($ IN THOUSANDS)                              2004       2003
------------------------------------------------------------------

Cash flows from operating activities:
 Net loss                                    $  (8,433) $  (8,553)
 Adjustments to reconcile net loss to
  net cash used for operating activities:
   Depreciation and amortization                 3,475      1,212
   Write off of investment in subsidiary             -        195
   Loss on disposal of assets                        -         43
   Interest expense added to loan principal      2,189          -
   Stock issued for services                         -        120
   Compensation charge for deferred stock
    units                                            -        131
   Accrued interest on loan to officer               -         (9)
   Settlement of loan to officer                     -        850
   Changes in operating assets and liabilities:
    Decrease in accounts receivable                  -      1,488
    Increase in inventories                          -     (3,043)
    Increase in prepaid expenses and other         (71)      (225)
    Increase (decrease) in accounts payable       (233)     1,597
    Increase (decrease) in accrued
     liabilities                                  (296)     2,549
                                             ---------  ---------

     Net cash used for operating activities     (3,369)    (3,645)
                                             ---------  ---------

Cash flows from investing activities:
 Disposal of subsidiary                              -     (1,019)
 Additions to property, plant and equipment         (8)      (140)
 Additions to developing crops                       -       (227)
 Decrease in restricted cash                     1,445          -
 Payment of loan to officer                          -        181
 (Increase) decrease in other assets                 -       (103)
                                             ---------  ---------

     Net cash provided by (used) for
     investing activities                        1,437     (1,308)
                                             ---------  ---------

Cash flows from financing activities:
 Proceeds from issuance of long-term debt            -        135
 Net proceeds from issuance of stock                 -      1,680
 Proceeds from convertible note payable              -        200
 Principal payments on long-term debt                -         (7)
                                             ---------  ---------

     Net cash provided by financing
      activities                                     -      2,008
                                             ---------  ---------

Net decrease in cash and cash equivalents       (1,932)    (2,945)

Cash and cash equivalents, beginning
 of period                                       3,422      3,229
                                             ---------  ---------

Cash and cash equivalents, end of period     $   1,490  $     284
                                             =========  =========

See accompanying notes to the consolidated financial statements.

                            Page 4




                                 CADIZ INC.

            CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED)

--------------------------------------------------------------------------------
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004
($ IN THOUSANDS)
--------------------------------------------------------------------------------
           PREFERRED STOCK    COMMON STOCK  ADDITIONAL                  TOTAL
           ---------------    ------------   PAID-IN   ACCUMULATED STOCKHOLDERS'
           SHARES   AMOUNT  SHARES   AMOUNT  CAPITAL     DEFICIT      DEFICIT
           ------   ------  ------   ------  -------     -------      -------
Balance as
 of December
 31, 2003  100,000  $  1  6,471,385  $   65  $ 184,974  $(168,823)   $  16,217

Exchange of
 deferred
 stock
 units for
 common
 stock           -     -      1,289       -        654          -          654

Issuance of
 common
 stock for
 services        -     -    140,000       1        349          -          350

Net loss         -     -          -       -          -     (8,433)      (8,433)
           -------  ----  ---------  ------  ---------  ---------    ---------

Balance as
 of September
 30, 2004  100,000  $  1  6,612,674  $   66  $ 185,977  $(177,256)   $   8,788
           =======  ====  =========  ======  =========  =========    =========

 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, 2003. On
January 30, 2003, Sun World International, Inc. and its
subsidiaries (collectively "Sun World") filed voluntary petitions
under Chapter 11 of the Bankruptcy Code. See "General Development
of Business", in the Company's Form 10-K for the year ended
December 31, 2003. Since the filing date, Sun World has operated
its business and managed its affairs as debtor and debtor in
possession. As of that date due to the Company's loss of control
over the operations of Sun World, the financial statements of Sun
World are no longer consolidated with those of Cadiz, but
instead, Cadiz is accounting for its investment in Sun World on
the cost basis of accounting. At January 31, 2003, Cadiz had a
net investment in Sun World of approximately $195 thousand
consisting of loans and other amounts due from Sun World of
$13,500,000 less losses in excess of investment in Sun World of
$13,305,000.  The Company wrote off the net investment in Sun
World of $195 thousand at the Chapter 11 filing date because it
did not anticipate being able to recover its investment. The
foregoing Consolidated Financial Statements include the accounts
of the Company and, until January 30, 2003, those of Sun World,
and contain all adjustments, consisting only of normal recurring
adjustments, which the Company considers necessary for a fair
presentation.  The unaudited consolidated financial information
furnished herein has been prepared in accordance with generally
accepted accounting principles and reflects all adjustments,
consisting only of normal recurring adjustments, which in the
opinion of management, are necessary to fairly state the
Company's financial position, the results of its operations and
its cash flows for the periods presented.

     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, 2003. The
results of operations for the three and nine months ended
September 30, 2004 are not necessarily indicative of results for
the entire fiscal year ending December 31, 2004.

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 $8.4 million for the nine months ended
September 30, 2004 and $11.5 million for the year ended December
31, 2003, had a working capital deficit of $35.0 million at
September 30, 2004 and used cash in operations of $3.4 million
in the nine months ended September 30, 2004 and $6.6 million for
the year ended December 31, 2003. In addition, Sun World filed for
reorganization under Chapter

                            Page 6

11 of the Bankruptcy Code.  The financial statements of the Company
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 the Company do not
present:  (a) the realizable value of assets on a liquidation basis
or the availability of such assets to satisfy liabilities, (b) the
amount which will ultimately be paid to settle liabilities and
contingencies which may be allowed in the Chapter 11
reorganization, or (c) the effect of changes which may be made
resulting from a Plan of Reorganization.  The appropriateness of
using the going-concern basis is dependent upon, among other
things, confirmation of a Plan of Reorganization, future
profitable operations, the ability to comply with provisions of
financing agreements and the ability to generate sufficient cash
from operations to meet obligations.

     During the quarter ended September 30, 2003, the Company
raised $1.7 million cash and during the quarter ended December
31, 2003, $8.6 million in cash through private sales of common
stock. Based on current forecasts, the Company believes it has
sufficient resources to fund normal operations until May
2005.  The Company expects to raise additional working capital
well in advance of May 2005 in order to fund its working capital
requirements beyond this date.  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.

PRINCIPLES OF CONSOLIDATION

     The consolidated financial statements include the accounts
of the Company and those of Sun World until January 30, 2003, at
which date Sun World 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. As
of that date, due to the Company's loss of control over the
operations of Sun World, the financial statements of Sun World
are no longer consolidated with those of Cadiz, but instead,
Cadiz accounts for its investment in Sun World on the cost basis
of accounting.

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 step one of the impairment test
of its goodwill in the first quarter of 2004 and determined that
its goodwill was not impaired.

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

                            Page 7

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.
As a result of the actions taken by Metropolitan in the fourth quarter
of 2002 as described in Note 1 in Cadiz' Annual Report on Form 10-
K for the year ended December 31, 2003, the Company, with the
assistance of an independent valuation firm, evaluated the
carrying value of its water program and determined that the asset
was not impaired and that the costs can be recovered through the
ultimate sale or operation of the project.

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, are disclosed in the notes to the financial statements.  The
Company accounts for equity securities issued to non-employees in
accordance with the provision of SFAS 123 and Emerging Issues
Task Force 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 NINE MONTHS ENDED SEPTEMBER 30,
                                 2004                        2003
                                 ----                        ----
                       THREE MONTHS NINE MONTHS   THREE MONTHS NINE MONTHS
                       ------------ -----------   ------------ -----------

Net loss applicable to
 common stock:
          As reported     $ (2,894)   $  (8,433)     $  (3,013)  $ (10,135)
          Expense under
           SFAS 123               -           -            (32)       (106)
                          ---------   ---------      ---------   ---------
          Pro forma       $  (2,894)  $  (8,433)     $  (3,045)  $ (10,241)
                          =========   =========      =========   =========

Net loss per common share:
          As reported     $   (0.44)  $   (1.28)     $   (1.32)  $   (4.85)
          Expense under
           SFAS 123               -           -          (0.01)      (0.05)
                          ---------   ---------      ---------   ---------

          Pro forma       $   (0.44)  $   (1.28)     $   (1.33)  $   (4.90)
                          =========   =========      =========   =========

     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

NEW ACCOUNTING PRONOUNCEMENTS

     In March 2004, the consensus of Emerging Issues Task Force
(EITF) Issue No. 03-06, Participating Securities and the Two-
Class Method under FASB Statement 128,  was published. EITF Issue
No. 03-06 addresses the computations of earnings per share by
companies that have issued securities other than common stock
that contractually entitle the holder to participate in dividends
and earnings of the company. Further guidance on the application
and allocations of the two-class method of calculating earnings
per share is also included. The provisions of EITF Issue No. 03-
06 were effective for reporting periods beginning after March
31, 2004. The adoption of this guidance did not have a
significant impact on the Company's financial results of
operations and financial position.


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

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

                                          SEPTEMBER 30, DECEMBER 31,
                                               2004       2003
                                               ----       ----
          Land                               $  22,010  $  22,010
          Permanent crops                        6,494      6,494
          Developing crops                         192        192
          Water programs                        14,274     14,274
          Buildings                              1,408      1,408
          Machinery and equipment                3,598      3,590
                                             ---------  ---------

                                                47,976     47,968
          Less accumulated depreciation         (8,848)    (8,454)
                                             ---------  ---------

                                             $  39,128  $  39,514
                                             =========  =========


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

     On December 15, 2003, the Company entered into an
amendment of its senior term loan and revolving credit facility
to extend the maturity date through March 31, 2005 and can obtain
further extensions through September 30, 2006, by maintaining
sufficient balances, among other conditions, in a cash collateral
account with the lender.  At the closing of the secured term
lending, the Company deposited into the lender's cash collateral
account the sum of $2,142,000.  The deposit, which is shown on
the balance sheet as Restricted Cash, represented collateral for
future interest payments on the Company's credit facility
accruing at the rate of 4% per annum from October 1, 2003 until
March 31, 2005.

     Interest under the amended credit facilities is payable
semiannually on March 31 and September 30 of each year at the
Company's option in either cash at 8% per annum, or in cash and
paid in kind ("PIK"), at 4% per annum for the cash portion and 8%
per annum for the PIK portion.  The PIK portion will be added to
the outstanding principal balance.

                            Page 9

     On March 31, 2004 and September 30, 2004, the Company
elected the 4% cash and 8% PIK option. Accordingly, 4% interest
from October 1, 2003 to March 31, 2004 in the amount of $0.7
million, and from April 1, 2004 to September 30, 2004 in the
amount of $0.7 million was paid from the restricted cash account
leaving a balance of $0.7 million. On the same dates, the accrued
8% PIK portion in the amount of $1.4 million from October 1, 2003
to March 31, 2004 and $1.5 million from April 1, 2004 to
September 30, 2004 was added to the principal balance of the
loan.

     At September 30, 2004, the $36.0 million principal balance
of the loan represents the original borrowing of $35.0 million
increased by the $2.9 million above less $1.9 million being the
unamortized portion of the debt discount resulting from the
issuance of the Series F preferred stock at the time of the loan
extension.

     In April 1997, Sun World issued $115 million of Series A
First Mortgage Notes through a private placement.  The notes have
subsequently been exchanged for Series B First Mortgage Notes,
which are registered under the Securities Act of 1933 and are
publicly traded.  The First Mortgage Notes are secured by a first
lien (subject to certain permitted liens) on substantially all of
the assets of Sun World and its subsidiaries other than growing
crops, crop inventories and accounts receivable and proceeds
thereof, which secure the Revolving Credit Facility.  With the
entering into the DIP Facility as described in the Company's
filing on Form 10-K for the year ended December 31, 2003, the
note holders now have a second position on substantially all of
the Company's assets for so long as the DIP Facility is
outstanding.  The First Mortgage Notes matured April 15, 2004.
The First Mortgage Notes include covenants that do not allow for
the payment of dividends by the Company other than out of cumulative
net income.  The First Mortgage Notes are currently in default as a
consequence of the Sun World bankruptcy filing. Sun World's proposed
plan of reorganization currently provides for settlement of claims
held by the holders of these notes through the issuance of equity
interests in Sun World to such holders.

     The First Mortgage Notes are also secured by the guarantees
of Coachella Growers, Inc., Sun Desert, Inc., Sun World/Rayo, and
Sun World International de Mexico S.A. de C.V. (collectively, the
"Sun World Subsidiary Guarantors") and by Cadiz.  Cadiz also
pledged all of the stock of Sun World as collateral for its
guarantee. The guarantees by the Sun World Subsidiary Guarantors
are full, unconditional, and joint and several.  Sun World and
the Sun World Subsidiary Guarantors comprise all of the direct
and indirect subsidiaries of the Company other than
inconsequential subsidiaries.

     In December 2003, the Company entered into a global
settlement agreement with Sun World and with the holders of a
majority of Sun World's First Mortgage Notes (the "Bondholders").
Pursuant to this global settlement agreement, the Bondholders
waived their rights to seek recovery against the Company on account
of the guarantee of Sun World's obligations under the First Mortgage
Notes. This right will similarly be waived by any other note
holder which elects to opt into this settlement. The identity and
ownership interests of Sun World's bondholders is not a matter of
public record, however, based on the results of investigations
performed on behalf of Sun World, the Company believes that is has
obtained waivers and/or releases to date from Bondholders which
hold, together with their affiliates, approximately 88% in
interest of outstanding Sun World notes.  All of the remaining
Sun World

                            Page 10

notes (other than a nominal interest of less than 1%)
are held by persons who are also shareholders of Cadiz.

     No non-releasing bondholder has sought to enforce the
guarantee of Sun World's obligations against the Company, nor does
the Company believe that any such bondholder given any indication that
it plans to do so.  As part of the Company's December 2003 global
settlement agreement, the Bondholders gave written direction to the
indenture trusteeirrevocably instructing the trustee to take no action
against the Company on behalf of bondholders or on account of the
guarantee.  Further, the Company believes that if a bondholder's
claim against Sun World is ultimately satisfied in whole or in part
through a Sun World plan of reorganization, then such bondholder
will not be entitled to enforce the guarantee against the Company
as to the amount of the claim so satisfied.

     In view of all of these factors, the Company does not anticipate
that significant claims will be made against us under the guarantee.

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

     Condensed consolidating financial information for the nine
months ended September 30, 2003 for the Company is as follows.
Consolidating financial information for the three months ended
September 30, 2003 and for 2004 is not presented as Sun World was
deconsolidated effective January 30, 2003 (in thousands):

CONSOLIDATING STATEMENT
OF OPERATIONS INFORMATION
NINE MONTHS ENDED SEPTEMBER 30, 2003
                            CADIZ   SUN WORLD   ELIMINATIONS  CONSOLIDATED
                            -----   ---------   ------------  ------------

Revenues                  $     303  $   3,005   $    (146)     $   3,162
                          ---------  ---------   ---------      ---------

Costs and expenses:
  Cost of sales                 271      2,653         (21)         2,903
  General and
   administrative             3,176        707        (125)         3,758
  Write off of Investment
   in subsidiary                195          -           -            195
  Reorganization costs            -        655           -            655
  Depreciation and
   amortization                 422        190           -            612
                          ---------  ---------   ---------      ---------

  Total costs and expenses    4,064      4,205        (146)         8,123
                          ---------  ---------   ---------      ---------

Operating loss               (3,761)    (1,200)          -         (4,961)

Income (loss) from
 subsidiary                  (2,469)         -       2,469              -

Interest expense, net         2,323      1,269           -          3,592
                          ---------  ---------   ---------      ---------

Net income (loss)            (8,553)    (2,469)      2,469         (8,553)

Less: Preferred stock
       dividends                844          -           -            844
      Imputed dividend on
       preferred stock          738          -           -            738
                          ---------  ---------   ---------      ---------

Net income (loss)
 applicable to common
 stock                    $ (10,135) $  (2,469)  $   2,469      $ (10,135)
                          =========  =========   =========      =========

                            Page 11



CONSOLIDATING STATEMENT OF
CASH FLOW INFORMATION
NINE MONTHS ENDED SEPTEMBER 30, 2003
                            CADIZ   SUN WORLD   ELIMINATIONS  CONSOLIDATED
                            -----   ---------   ------------  ------------

Net cash used for
 operating activities     $  (1,942) $  (1,703)  $       -      $  (3,645)
                          ---------  ---------   ---------      ---------

Cash flows from investing
 activities:
 Disposal of subsidiary           -     (1,019)          -         (1,019)
 Additions to property,
  plant and equipment             -       (140)          -           (140)
 Additions to developing
  crops                         (30)      (197)          -           (227)
 Payment of loan to
  officer                       181          -           -            181
 Decrease (increase) in
  other assets                    6       (109)          -           (103)
                          ---------  ---------   ---------      ---------

Net cash provided by
 (used) by investing
 activities                     157     (1,465)          -         (1,308)
                          ---------  ---------   ---------      ---------

Cash flows from financing
 activities:
 Net proceeds from
  issuance of stock           1,680          -           -          1,680
 Proceeds from issuance of
  long-term debt                  -        135           -            135
 Net proceeds from
  convertible note payable      200          -           -            200
 Principal payments on
  long-term debt                  -         (7)          -             (7)
                          ---------  ---------   ---------      ---------

Net cash provided by
 financing activities         1,880        128           -          2,008
                          ---------  ---------   ---------      ---------

Net increase (decrease)
 in cash and cash
 equivalents                     95     (3,040)          -         (2,945)

Cash and cash equivalents,
 beginning of period            189      3,040           -          3,229
                          ---------  ---------   ---------      ---------

Cash and cash equivalents,
 end of period            $     284  $       -   $       -      $     284
                          =========  =========   =========      =========


NOTE 4 - 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 1,744,000 shares (including Series F
preferred stock convertible into 1,729,000 shares of common
stock) and 317,000 shares for the three months ended September
30, 2004 and 2003, respectively.  For the nine months ended
September 30, 2004 and 2003, weighted average shares outstanding
would have increased by approximately 1,748,000 shares and
319,000 shares, respectively.

                            Page 12

NOTE 5 - SEGMENT INFORMATION
----------------------------

     Financial information by reportable business segment is
reported in the tables below. The changes in the agricultural
segment for the nine months ended September 30, 2004 are due to
the deconsolidation of Sun World in January 2003.

                          THREE MONTHS ENDED      NINE MONTHS ENDED
                             SEPTEMBER 30,           SEPTEMBER 30,
                           2004        2003        2004       2003
                           ----        ----        ----       ----
External sales
 Water Resources         $      12   $      19   $      32  $     157
 Agricultural                    -           -           -      3,005
                         ---------   ---------   ---------  ---------
 Consolidated            $      12   $      19   $      32  $   3,162
                         =========   =========   =========  =========

Inter-segment sales
 Water Resources         $       -   $       -   $       -  $     146
 Agricultural                    -           -           -       (146)
                         ---------   ---------   ---------  ---------
 Consolidated            $       -   $       -   $       -  $       -
                         =========   =========   =========  =========

Total sales
 Water Resources         $      12 $        19   $      32  $     303
 Agricultural                    -           -           -      3,005
 Other                           -           -           -       (146)
                         ---------   ---------   ---------  ---------
 Consolidated            $      12   $      19   $      32  $   3,162
                         =========   =========   =========  =========

Income (loss)
before tax
 Water Resources         $    (833)  $  (1,666)  $  (2,092) $  (3,566)
 Agricultural                    -           -           -     (1,200)
 Interest expense           (2,061)       (820)     (6,341)    (3,592)
 Other                           -           -           -       (195)
                         ---------   ---------   ---------  ---------
 Consolidated            $  (2,894)  $  (2,486)  $  (8,433) $  (8,553)
                         =========   =========   =========  =========

                       September 30, December 31,
                           2004         2003
                           ----         ----
Assets
 Water Resources         $  45,601   $  49,526
 Agricultural                    -           -
                         ---------   ---------
 Consolidated            $  45,601   $  49,526
                         =========   =========

                            Page 13




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

CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

-------------------------------------------------------------------
                                               THREE MONTHS ENDED
                                                  SEPTEMBER 30,
($ IN THOUSANDS)                                2004       2003
-------------------------------------------------------------------

Revenues                                     $  52,825  $  51,499
                                             ---------  ---------

Costs and expenses:
 Cost of sales                                  40,671     41,702
 General and administrative                      1,891      2,301
 Removal of underperforming crops                  640        521
 Depreciation and amortization                   2,805      3,470
                                             ---------  ---------

   Total costs and expenses                     46,007     47,994
                                             ---------  ---------

Operating profit                                 6,818      3,505

Gain on sale of property                           148        707

Interest expense, net (contractual interest
 for 2004 and 2003, respectively, was
 $3,822 and $4,219)                                300        619
                                             ---------  ---------

Income before reorganization items
 and income taxes                                6,666      3,593

Reorganization items:
 Professional fees                                 468        293
                                             ---------  ---------

   Total reorganization items                      468        293
                                             ---------  ---------

Net income before income taxes                   6,198      3,300

Income tax expense                                   1          5
                                             ---------  ---------

Net income                                   $   6,197  $   3,295
                                             =========  =========

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 OPERATIONS (UNAUDITED)

-------------------------------------------------------------------
                                               NINE MONTHS ENDED
                                                 SEPTEMBER 30,
($ IN THOUSANDS)                                2004       2003
-------------------------------------------------------------------

Revenues                                     $ 102,171  $  84,783
                                             ---------  ---------

Costs and expenses:
 Cost of sales                                  79,804     69,836
 General and administrative                      6,377      6,657
 Removal of underperforming crops                1,248        607
 Depreciation and amortization                   5,190      5,941
                                             ---------  ---------

   Total costs and expenses                     92,619     83,041
                                             ---------  ---------

Operating profit                                 9,552      1,742

Gain on sale of property                         1,313        449

Interest expense (contractual interest for
 2004 and 2003, respectively, was $11,750
 and $12,382)                                    1,184      2,756
                                             ---------  ---------

Income (loss) before reorganization items
 and income taxes                                9,681       (565)

Reorganization items:
 Debt issuance costs                                 -        912
 Professional fees                               1,476      2,924
                                             ---------  ---------

Total reorganization items                       1,476      3,836
                                             ---------  ---------

Income (loss) before income taxes                8,205     (4,401)

Income tax expense                                  63         25
                                             ---------  ---------

Net income (loss)                            $   8,142  $  (4,426)
                                             =========  =========

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 BALANCE SHEET  (UNAUDITED)

-------------------------------------------------------------------
                                         SEPTEMBER 30, DECEMBER 31,
 ($ IN THOUSANDS)                              2004        2003
-------------------------------------------------------------------

ASSETS

Current assets:
 Cash and cash equivalents                   $   5,214  $   1,548
 Accounts receivable, net                       12,598      7,031
 Inventories                                    10,618     12,851
 Prepaid expenses and other                      1,803      1,817
                                             ---------  ---------

    Total current assets                        30,233     23,247

Property, plant and equipment                  104,926    107,812

Intangible assets                                1,924      1,903

Other assets                                     6,372      6,568
                                             ---------  ---------

 Total assets                                $ 143,455  $ 139,530
                                             =========  =========

LIABILITIES AND STOCKHOLDER'S DEFICIT

Current liabilities:
 Accounts payable                             $  5,247  $   5,689
 Accrued liabilities                             3,167      2,280
 Revolving credit facility                           -      4,423
 Long-term debt, current portion                   739        125
                                             ---------  ---------

     Total current liabilities                   9,153     12,517

Long-term debt                                      23        730

Deferred income taxes                            5,447      5,447

Other liabilities                                   17        365
                                             ---------  ---------

       Total liabilities not subject to
        compromise                              14,640     19,059

Liabilities subject to compromise under
 reorganization proceedings                    141,452    141,606

Commitments and 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     39,123
 Accumulated deficit                           (52,116)   (60,258)
                                             ---------  ---------

  Total stockholder's deficit                  (12,637)   (21,135)
                                             ---------  ---------

 Total liabilities and stockholder's deficit $ 143,455  $ 139,530
                                             =========  =========

See accompanying notes to the consolidated financial statements.

                            Page 16



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

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
-------------------------------------------------------------------
                                               NINE MONTHS ENDED
                                                 SEPTEMBER 30,
($ IN THOUSANDS)                                 2004      2003
-------------------------------------------------------------------

Cash flows from operating activities:
 Net income (loss)                           $   8,142  $  (4,426)
 Adjustments to reconcile net income (loss)
  to net cash provided by (used for)
  operating activities:
  Depreciation and amortization                  5,199      6,043
  Write-off of debt issuance costs                   -        912
  Gain on disposal of assets                    (1,313)      (449)
  Removal of under performing crops              1,248        607
  Shares of KADCO stock earned for services          -       (938)
  Compensation charge for deferred stock
   units                                            20        178
  Changes in operating assets and
   liabilities:
   Increase in accounts receivable              (5,378)    (3,534)
   Decrease (increase) in inventories            1,258     (1,834)
   Decrease (increase) in prepaid expenses
    and other                                       14     (1,197)
   (Decrease) increase in accounts payable        (442)     3,619
   Increase in accrued liabilities                 887        922
   Decrease in due to parent                         -        (47)
   Decrease in other liabilities                   (11)      (160)
                                             ---------  ---------

  Net cash provided by (used for) operating
   activities before reorganization items        9,624       (304)
                                             ---------  ---------

(Decrease) increase in liabilities subject
 to compromise under reorganization
 proceedings                                      (155)       726
                                             ---------  ---------

  Net cash provided by operating activities      9,469        422
                                             ---------  ---------

Cash flows from investing activities:
 Additions to property, plant and equipment     (1,960)    (1,450)
 Additions to developing crops                  (2,078)    (1,406)
 Proceeds from disposal of property, plant
  and equipment                                  2,992      2,740
 Increase in other assets                         (240)      (347)
                                             ---------  ---------

  Net cash used for investing activities        (1,286)      (463)
                                             ---------  ---------

Cash flows from financing activities:
 Proceeds from issuance of long-term debt            -        136
 Principal payments on long-term debt              (94)      (946)
 Borrowings from intercompany revolver, net          -         51
 Payments for short-term borrowings, net        (4,423)      (246)
                                             ---------  ---------

  Net cash used for financing activities        (4,517)    (1,005)
                                             ---------  ---------

Net increase (decrease) in cash and cash
 equivalents                                     3,666     (1,046)

Cash and cash equivalents at beginning
 of period                                       1,548      3,040
                                             ---------  ---------

Cash and cash equivalents at end of period   $   5,214  $   1,994
                                             =========  =========

See accompanying notes to the consolidated financial statements.

                            Page 17




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

CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT (UNAUDITED)

--------------------------------------------------------------------------------
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004
($ IN THOUSANDS)
--------------------------------------------------------------------------------
                                          ADDITIONAL                   TOTAL
                           COMMON STOCK    PAID-IN    ACCUMULATED  STOCKHOLDERS'
                         SHARES   AMOUNT   CAPITAL      DEFICIT       DEFICIT
                         ------   ------   -------      -------       -------
Balance as of December
 31, 2003                 42,000  $    -  $ 39,123    $ (60,258)     $ (21,135)

Settlement of deferred
 stock units through
 issuance of common
 stock by parent               -       -       356            -            356

Net income                     -       -         -        8,142          8,142
                       ---------  ------  --------    ---------      ---------
Balance as of
 September 30, 2004       42,000  $    -  $ 39,479    $ (52,116)     $ (12,637)
                       =========  ======  ========    =========      =========

See accompanying notes to the consolidated financial statements.

                            Page 18




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 "Company")
operate as the agricultural segment of Cadiz Inc. ("Cadiz").  The
Company is an integrated agricultural operation that owns
approximately 17,100 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 is marketed, packed
and shipped to food wholesalers and retailers located throughout
the United States and to more than 30 foreign countries.  The
Company owns and operates three cold storage and/or packing
facilities located in California, of which two are operated and
one is leased to a third party.

     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 no-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 2004 growing season.

     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
the creditors and equity holders and approved by the Bankruptcy
Court.

     The four Sun World entities are the joint proponents of the
Debtors' Joint Plan of Reorganization Dated November 24, 2003
(the "Plan").  Under the Plan, which is subject to amendment and
modification, the Reorganized Sun World will continue to operate
as a going concern on and after the Plan's effective date.  The
Plan provides for the restructuring of Sun World's balance sheet
by providing for Sun World to issue equity interests in the
Reorganized Company 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 company to entities
holding certain other unsecured claims in full satisfaction of
those claims.  Exit financing to be provided by an exit lender
under the Plan should meet the Company's need for seasonal
financing following the effective date.  The hearing to consider
the adequacy of the disclosure statement accompanying the Plan,
most recently scheduled for June 11, 2004, has been subject to
several postponements and no

                            Page 19

hearing date is currently scheduled.

     In Sun World's filings with the Bankruptcy Court, Sun World
has reported that it believes that the Plan likely cannot be
confirmed absent the acceptance of the holders of the First
Mortgage Notes, in their capacity as secured creditors.  Sun
World has further reported to the Bankruptcy Court that the
holders of the First Mortgage Notes have not reached a consensus
with respect to certain corporate governance issues relating to
the reorganized company, and that they have been unable to
finalize a shareholder agreement term sheet.  In the meantime,
Sun World has, with Bankruptcy Court approval, expanded the scope
of its engagement with Ernst & Young Corporate Finance LLC to
include services related to (i) a sale of substantially all of
its assets pursuant to a motion or a plan of reorganization, and
(ii) obtaining an equity investor and financing under a plan of
reorganization and is actively pursuing the sales/investment
process.  Sun World has chosen to delay the preparation of an
amended Plan and disclosure statement and the scheduling of a
disclosure statement hearing date pending the outcome of these
most recent developments.  Sun World's exclusivity period (i.e.
the period during which only Sun World may file a plan of
reorganization) currently expires on December 31, 2004. The
Company cannot predict at this time what changes, if any, will be
made to the Plan as a result of the foregoing or whether or not
the Plan, as amended, will be approved.

     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 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 the
Company 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
the Company do not present:  (a) the realizable value of assets
on a liquidation basis or the availability of such assets to
satisfy liabilities, (b) the amount which will ultimately be paid
to settle liabilities and contingencies which may be allowed in
the Chapter 11 reorganization, or (c) the effect of changes which
may be made resulting from a Plan of Reorganization.  The
appropriateness of using the going-concern basis is dependent
upon, among other things, confirmation of a Plan of
Reorganization, future profitable operations, the ability to
comply with debtor-in-possession financing agreements and the
ability to generate sufficient cash from operations to meet
obligations.

     Inherent in a successful Plan of Reorganization is a capital
structure that permits the Company to generate cash flows after
reorganization to meet its restructured obligations and fund the
current operations of the Company.  The Company's objective in
the Chapter 11 proceeding is to achieve the highest possible
recovery for all creditors and shareholders consistent with the
Company's ability to pay and the continuation of its business.
There can be no assurance that the Company will be able to attain
these objectives or reorganize successfully.  Because of the
ongoing nature of the reorganization case, the financial
statements contained herein are subject to material
uncertainties.

                            Page 20


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, 2003.  The foregoing Consolidated
Financial Statements include all adjustments, consisting only of
normal recurring adjustments, which Sun World considers necessary
for a fair presentation.  The results of operations for the three
months and nine months ended September 30, 2004 are not
necessarily indicative of the results to be expected for the full
fiscal year as Sun World's harvest seasons and revenues are
seasonal in nature.

     Since the Chapter 11 bankruptcy filing, the Company 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 consist of professional fees directly
associated with the reorganization of $1,476,000 for the nine
months ended September 30, 2004 and the write off of unamortized
debt issuances costs as of the Petition Date of $912,000 and
professional fees directly associated with the reorganization of
$2,924,000 for the nine months ended September 30, 2003.

     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):


                                          SEPTEMBER 30, DECEMBER 31,
                                               2004        2003
                                               ----        ----
     Growing crops                           $   7,131  $  10,427
     Harvested product                           1,228        189
     Materials and supplies                      2,259      2,235
                                             ---------  ---------

                                             $  10,618  $  12,851
                                             =========  =========

                            Page 21


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 the Company.  We have 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 our 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.

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

                                          SEPTEMBER 30, DECEMBER 31,
                                               2004        2003
                                               ----        ----
     Accounts payable                        $   4,157  $   4,311
     Interest payable                            3,795      3,795
     Due to parent company                      13,500     13,500
     Long-term debt                            120,000    120,000
                                             ---------  ---------

          Total                              $ 141,452  $ 141,606
                                             =========  =========

                            Page 22


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

     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; the uncertainty of the outcome of Sun World's
bankruptcy proceedings; our outstanding guarantee of Sun World's
First Mortgage Notes; 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, 2003.

OVERVIEW

     As discussed in further detail below, as of January 30,
2003 the financial statements of our Sun World subsidiary are no
longer being consolidated with ours.  Presently, our operations
(and, accordingly, our working capital requirements) relate
primarily to our water development activities and, more
specifically, to the Cadiz Groundwater Storage and Dry-Year
Supply Program.  Our results of operations for periods subsequent
to January 2003 have been, and in future fiscal periods will be,
largely reflective of the operations of our water development
activities.

     CADIZ GROUNDWATER STORAGE AND DRY-YEAR SUPPLY PROGRAM.  In
1997, we commenced discussions with the Metropolitan Water
District of Southern California (Metropolitan) in order to
develop principles and terms for a long-term agreement for a
joint venture water storage and supply program on and under our
Cadiz, California property. In July 1998, Cadiz and Metropolitan
approved the Principles and Terms for Agreement for the Cadiz
Groundwater Storage and Dry-Year Supply Program (the Cadiz
Program). At the same time, Cadiz and Metropolitan authorized
preparation of a final agreement based on these principles and
initiated the environmental review process for the Cadiz Program.
Following extensive negotiations with Cadiz to further refine and
finalize these basic principles, Metropolitan's Board of
Directors approved definitive economic terms and responsibilities
at their April 2001 board meeting. The Cadiz Program definitive
economic terms were to serve as the basis for a final agreement
to be executed between Metropolitan and Cadiz, subject to the
then-ongoing environmental review process.

     Under the Cadiz Program, during wet years or periods of
excess supply, surplus water from the Colorado River Aqueduct
would be stored in the groundwater basin underlying our property.
During dry years or times of reduced allocations from the
Colorado River, the previously imported water, together with
additional existing groundwater, would be extracted and
delivered, via a conveyance pipeline, back to the aqueduct.

     On August 29, 2002, the U.S. Department of Interior
approved the Final Environmental Impact Statement for the Cadiz
Program and issued its Record of Decision, the final step in the

                            Page 23

federal environmental review process for the Cadiz Program. The
Record of Decision amends the California Desert Conservation Area
Plan for an exception to the utility corridor element and offered
to Metropolitan a right-of-way grant necessary for the
construction and operation of the Cadiz Program.

     On September 17, 2002, the Metropolitan Subcommittee on
Rules and Ethics scheduled a series of meetings in October and
November 2002 to consider (a) acceptance of the Record of
Decision and the terms and conditions of the right-of-way grant,
(b) certification of the environmental documentation for the
Cadiz Program under state law, and (c) the final agreement
between Cadiz and Metropolitan.

     On October 8, 2002, Metropolitan's Board considered
acceptance of the Record of Decision and the terms and conditions
of the right-of-way grant. The Board voted not to adopt
Metropolitan staff's recommendation to approve the terms and
conditions of the right-of-way grant issued by the Department of
the Interior for the Cadiz Program by a vote of 47.11% in favor
and 47.36% against the recommendation. Instead, the Board voted
for an alternative motion to reject the terms and conditions of
the right-of-way grant and to not proceed with the Cadiz Program
by a vote of 50.25% in favor and 44.22% against.

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

     Until October 2002 we had expected that the Cadiz Program
would be implemented upon the previously negotiated terms, and we
had structured our financing arrangements with a view to such
implementation.  Following Metropolitan's vote in October 2002 to
not proceed with the Cadiz Program, these financing arrangements
were no longer workable on their then existing terms.

     In January 2003, Sun World filed a voluntary petition for
Chapter 11 bankruptcy protection in order to access seasonal
financing.  Historically, we, as the parent company of Sun World,
had supplemented Sun World's annual working capital requirements.
However, at the time of Sun World's filing we did not have the
ability to do this.  The only way Sun World could obtain the new
financing needed to provide working capital for its 2003-2004
growing seasons was to seek court approval, pursuant to Chapter
11, to a new Debtor in Possession ("DIP") facility.

     Sun World's financial situation and bankruptcy filing, in
turn, negated an agreement we had previously reached with our
primary lender, ING Capital LLC ("ING") for a three year
extension of approximately $35 million of senior secured loans
with a maturity date of January 31, 2003.  As we were unable to
make payment of this debt when due, in February 2003 ING declared
these loans to be in default, although we remained in
negotiations with ING for an overall restructuring of this debt.

     Our financing activities during 2003 were directed primarily
towards completion of an overall restructuring of our capital
structure which would preserve our ability to continue with our
water resource development programs.  This overall capital
restructuring was successfully completed in December 2003, and
featured the following components, in chronological order:

                            Page 24

       *  In June 2003 we completed a private equity offering of
          800,000 shares of our common stock (after giving effect
          to our one for twenty-five reverse stock split
          effective December 15, 2003 (the "Reverse Split")).
          672,000 shares were issued in consideration for $1.68
          million in cash, 112,000 were issued in consideration
          for $280 thousand in services rendered to us, and
          16,000 were issued as consideration for fees related to
          the equity offering.  The proceeds raised in this
          offering provided sufficient working capital for us to
          continue operations pending completion of the larger
          $8.6 million private placement in December 2003
          described below.

       *  In August 2003 our stockholders approved
          implementation of a reverse split of our outstanding
          common stock, with the exact ratio for the split to be
          determined by our Board of Directors at the time of the
          split.  The reverse split was intended to increase the
          likelihood of our being able to meet the minimum
          trading price required for listing our stock on The
          Nasdaq SmallCap Market or other national securities
          exchange, as well as to provide us with additional
          authorized but unissued shares of common stock to be
          used for capital raising and other purposes.

       *  In October 2003 we entered into an agreement with the
          holder of all of our outstanding Series D, Series E-1
          and Series E-2 preferred stock whereby we issued
          400,000 shares of our common stock (after giving effect
          to the Reverse Split) in exchange of all of our then
          outstanding Series D, Series E-1 and Series E-2
          preferred stock.  In connection with this conversion,
          we recorded a charge against paid-in capital as an
          inducement to convert.

       *  In December 2003, as described in further detail in
          our most recent Form 10-K, we simultaneously completed:

            *  An extension of up to three years of our $35
               million debt facility with ING and which included
               the issue to ING of 100,000 shares of Series F
               convertible preferred stock,

            *  A one for twenty-five reverse split of our
               outstanding common stock;

            *  An additional equity infusion of $8.6 million
               through the issuance of 3,440,000 shares of common
               stock;

            *  The transfer of our properties to Cadiz Real
               Estate LLC, a Delaware limited liability company
               wholly owned by us and created at the behest of
               ING; and

            *  The completion of our global settlement agreement
               with the holders of a majority of Sun World's
               First Mortgage Notes (the "Bondholders") which
               provides for the pledge of our equity in Sun World
               together with an unsecured claim due to us from
               Sun World of $13.5 million to a trust controlled
               by the Bondholders.

                            Page 25

     As a consequence of all of these transactions, the number
of outstanding shares of our common stock (after giving effect to
our December 2003 one for twenty-five reverse stock split)
increased from 1,858,659 shares as of December 31, 2002
(including 400,000 common shares issuable upon the conversion of
outstanding Series D and E preferred stock) to 8,341,629 shares
as of September 30, 2004 (including 1,728,955 common shares
issuable upon the conversion of outstanding Series F preferred
stock).

     With the completion of these transactions, we have provided
for our short-term working capital needs and are able to refocus
our efforts on obtaining and utilizing the capital necessary to
proceed with our water resource development programs.

RESULTS OF OPERATIONS

     On January 30, 2003, Sun World filed a voluntary petition
for Chapter 11 bankruptcy protection.  As of that date due to the
Company's loss of control over the operations of Sun World, the
financial statements of Sun World are no longer consolidated with
ours, but instead, we account for our investment in Sun World on
the cost basis of accounting.  As a result of changing to the
cost basis of accounting on January 31, 2003, we had a net
investment in Sun World of approximately $195 thousand consisting
of loans and other amounts due from Sun World of $13,500,000 less
losses in excess of investment in Sun World of $13,305,000. We
wrote off the net investment in Sun World of $195 thousand at the
Chapter 11 filing date because we do not anticipate being able to
recover our investment.

     Our consolidated financial statements for the three month
and nine month periods ended September 30, 2003 and September 30,
2004 include the results of operations for Sun World only for the
period January 1, 2003 through January 30, 2003.  The results of
operations of Sun World subsequent to January 30, 2003 are not
consolidated in these consolidated financial statements.  As a
result of the foregoing, direct comparisons of our consolidated
results of operations for the nine months ended September 30,
2004 with results for the nine months ended September 30, 2003
will not, in our view, prove meaningful.

     For this reason, we believe that material trends and
developments with respect to our results of operations from
period to period are more readily identifiable by comparing the
unconsolidated results of Cadiz Inc., which do not include the
January 2003 operations of Sun World, rather than our
consolidated results of operations, which include the January
2003 operations of Sun World.  Therefore, in the following
discussion of results of operations, we are using only the
unconsolidated results of Cadiz Inc.

     Tables which disclose the results of Cadiz Inc. separate
from its consolidated subsidiary Sun World for the nine month
period ended September 30, 2003, and from which the numbers used
in the following discussion are derived, can be found in Note 3
to the Consolidated Financial Statements in Item 1 above.

THREE MONTHS ENDED SEPTEMBER 30, 2004 COMPARED TO THREE MONTHS
ENDED SEPTEMBER 30, 2003
------------------------

     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 $12
thousand for the three months ended September 30, 2004 and $19
thousand for the three

                            Page 26

months ended September 30, 2003.  Our net loss totaled $2.9 million
for the three months ended September 30, 2004 compared to $2.5
million for the three months ended September 30, 2003.

     Our primary expenses are our ongoing overhead costs (i.e.
general and administrative expense) and our interest expense.

     REVENUES  Cadiz had revenues of $12 thousand for the three
months ended September 30, 2004 and $19 thousand for the three
months ended September 30, 2003 being rental income from Cadiz
Ranch.

     GENERAL AND ADMINISTRATIVE EXPENSES.   General and
administrative expenses for Cadiz during the three months ended
September 30, 2004 totaled $636 thousand compared to $1,378
thousand for the three months ended September 30, 2003. The
decrease in general and administrative expenses is primarily due
to reductions in professional fees, salaries and other costs
associated with a reduction in staffing.

     DEPRECIATION AND AMORTIZATION.  Depreciation and
amortization expense for the three months ended September 30,
2004 and 2003 totaled $132 thousand and $133 thousand
respectively.

     INTEREST EXPENSE, NET.  Net interest expense totaled $2.1
million during the three months ended September 30, 2004,
compared to $0.8 million during the same period in 2003.  The
following table summarizes the components of net interest expense
for the two periods (in thousands):

                                              THREE MONTHS ENDED
                                                 SEPTEMBER 30,
                                                2004       2003
                                                ----       ----

      Interest on outstanding debt           $   1,117  $     783
      Amortization of financing costs            1,026         37
      Interest income                               (5)         -
                                             ---------  ---------

                                             $   2,138  $     820
                                             =========  =========

     The increase in total interest expense on outstanding debt
during the third quarter of 2004 is primarily due to a
combination of higher interest rates on the ING loan and the
amortization of financing costs.  These financing costs, which
include fees and preferred stock issued in conjunction with the
ING loan extension, are amortized over the initial term of the
debt agreement through March 31, 2005. For the 2004 period the
amortization of financing costs is non-cash, as is $0.7 million
of the interest on outstanding debt representing the PIK portion
which is added to the loan principal. The result is that
approximately $0.4 million of the $2.1 million interest expense
represents a current cash interest expense when it is paid from
Restricted Cash every six months. See Note 3 to Cadiz financial
statements.

                            Page 27

NINE MONTHS ENDED SEPTEMBER 30, 2004 COMPARED TO NINE MONTHS
ENDED SEPTEMBER 30, 2003
------------------------

     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.  Cadiz had revenues of $32
thousand for the nine months ended September 30, 2004 and $303
thousand for the nine months ended September 30, 2003.  The
decrease in revenue was mainly attributable to the loss of
management fees which had been charged to Sun World. Our net loss
totaled $8.4 million for the nine months ended September 30, 2004
compared to $8.6 million for the nine months ended September 30,
2003. The loss for the nine months ended September 30, 2003
included a loss of $2.5 million from Sun World, without which,
Cadiz loss would have been $6.1 million. The increased loss for
the 2004 period resulted primarily from an increase in net
interest expense.

     Our primary expenses are our ongoing overhead costs (i.e.
general and administrative expense) and our interest expense.

     REVENUES.   We had revenues of $32 thousand for the nine
months ended September 30, 2004 and $303 thousand for the nine
months ended September 30, 2003.  The decrease in revenue was
attributable to the loss of management fees which had been
charged to Sun World and the loss of the fixed rental revenue
from Cadiz Ranch from a lease which terminated in July 2003.

     GENERAL AND ADMINISTRATIVE EXPENSES.  Cadiz general and
administrative expenses for the nine months ended September 30,
2004 totaled $1.7 million compared to $3.2 million for the same
2003 period. The decrease in general and administrative expenses
is primarily due to reductions in professional fees, salaries and
other costs associated with a reduction in staffing

     WRITE OFF OF INVESTMENT IN SUBSIDIARY.  On January 30, 2003
Sun World and certain of its subsidiaries filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code. As
of that date due to the Company's loss of control over the
operations of Sun World, the financial statements are no longer
consolidated with those of Cadiz, but instead Cadiz accounts for
its investment in Sun World on the cost basis of accounting. As a
result of changing to the cost basis of accounting and because
the Company does not believe it will be able to recover its
investment, the Company wrote off its net investment in Sun World
of $195,000.

     DEPRECIATION AND AMORTIZATION EXPENSE. Depreciation and
amortization expense for the nine months ended September 30, 2004
totaled $394 thousand compared to $422 thousand during the same
period in 2003.

     INTEREST EXPENSE, NET.  Net interest expense totaled $6.3
million during the nine months ended September 30, 2004 as
compared to $2.3 million in 2003.  The following table summarizes
the components of net interest expense for the two periods (in
thousands):

                                              NINE MONTHS ENDED
                                                SEPTEMBER 30,
                                               2004      2003
                                               ----      ----

     Interest on outstanding debt - Cadiz    $   3,284  $   1,976
     Amortization of financing costs             3,080        404

                            Page 28

     Interest income                               (23)       (57)
                                             ---------  ---------

                                             $   6,341  $   2,323
                                             =========  =========

     The increase in net interest expense in 2004 is primarily
due to a combination of higher interest rates on the ING loan and
the amortization of both debt discount and borrowing fees.  These
financing costs, which include fees and preferred stock issued in
conjunction with the ING loan extension are amortized over the
initial term of the debt agreement through March 31, 2005. For
the 2004 period the amortization of financing costs is non-cash,
as is approximately $2.2 million of the interest on outstanding
debt representing the PIK portion which is added to the loan
principal. The result is that only approximately $1.1 million of
the $6.3 million interest expense represents a current cash
outlay when it is paid from Restricted Cash every six months. See
Note 3 to Cadiz financial statements.


LIQUIDITY AND CAPITAL RESOURCES

(a)  CURRENT FINANCING ARRANGEMENTS
-----------------------------------

     CADIZ OBLIGATIONS.  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.

     As of December 31, 2002, we were obligated for approximately
$10.1 million under a senior term loan facility and $25 million
under a revolving credit facility with our primary secured
lender, ING Capital LLC. Each facility had a maturity date of
January 31, 2003. Sun World's bankruptcy filing negated an
agreement we had previously reached with ING for a three year
extension of these loans, and in February 2003 ING declared these
loans to be in default.

     During 2003 we remained in continuing discussions with ING
concerning an overall restructuring of this debt and in December
2003, as part of an overall restructuring of our capital
structure, we entered into agreements with ING which provided for
establishing the outstanding principal balance owed to ING at $35
million and extended the maturity date of the credit facilities
until March 31, 2005, with three additional automatic 6 month
extensions conditioned on our maintaining, as of the commencement
date of each extension, cash in an amount equal to at least 4% of
the outstanding principal balance of the credit facilities in a
cash collateral account held by ING. Additional details
concerning the terms of this December 2003 restructuring are
included in our Form 10-K for the year ended December 31, 2003.

     As we continue to actively pursue our business strategy,
additional financing specifically in connection with our water
programs will be required. See "Outlook", below. 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 that held by ING.

                            Page 29

     SUN WORLD OBLIGATIONS.  Sun World has outstanding $115
million of First Mortgage Notes. The First Mortgage Notes were
originally to mature on April 15, 2004. The First Mortgage Notes
are currently in default as a consequence of the Sun World
bankruptcy filing. Sun World's proposed plan of reorganization
currently provides for settlement of claims held by the holders
of these notes through the issuance of equity interests in Sun
World to such holders.

     The Sun World notes are also secured by the guarantee of
Cadiz. As we are not a party to the Sun World bankruptcy filing,
the effectiveness of a plan of reorganization which discharges
Sun World's obligation to holders of these notes will not, in and
of itself, release us of any obligations which we may still have
under this guarantee. The Plan, as currently proposed, includes a
release in our favor with respect to any of our remaining
obligations under this guarantee; however, we do not know whether
this provision of the Plan will be approved by the Bankruptcy
Court.

     We have limited any potential obligation we may have
otherwise had under the guarantee by entering into release
agreements with the majority of the holders of the Sun World
notes.  For example, in December 2003 we entered into a global
settlement agreement with Sun World and with the holders of a
majority of Sun World's First Mortgage Notes (the "Bondholders").
Pursuant to this global settlement agreement, the Bondholders
waived their rights to seek recovery against us on account of our
guarantee of Sun World's obligations under the First Mortgage
Notes. This right will similarly be waived by any other note
holder which elects to opt into this settlement. The identity and
ownership interests of Sun World's bondholders is not a matter of
public record, however, based on the results of investigations
performed on behalf of Sun World, we believe that we have
obtained waivers and/or releases to date from Bondholders which
hold, together with their affiliates, approximately 88% in
interest of outstanding Sun World notes.  All of the remaining
Sun World notes (other than a nominal interest of less than 1%)
are held by persons who are also shareholders of ours.

     No non-releasing bondholder has sought to enforce our
guarantee of Sun World's obligations against us, nor has any such
bondholder given any indication to us that it plans to do so.  As
part of our December 2003 global settlement agreement, the
Bondholders gave written direction to the indenture trustee
irrevocably instructing the trustee to take no action against us
on behalf of bondholders or on account of the guarantee.
Further, we believe that if a bondholder's claim against Sun
World is ultimately satisfied in whole or in part through a Sun
World plan of reorganization, then such bondholder will not be
entitled to enforce the guarantee against us as to the amount of
the claim so satisfied.

     In view of all of these factors, we do not anticipate that
significant claims will be made against us under the guarantee
and we are not setting aside existing working capital or seeking
to raise additional working capital in order to pay claims under
the guarantee.

     We have no other obligations or working capital needs with
respect to Sun World.  As part of our December 2003 global
settlement, we have settled all of our claims and obligations
with Sun World.  Although we continue to be the record owner of
Sun World's stock, Sun World will not be receiving working
capital contributions from us while it is in bankruptcy
proceedings.  Sun World's currently proposed plan of
reorganization provides for our ownership interests in Sun World
to be canceled.

                            Page 30

     CASH USED FOR OPERATING ACTIVITIES.  Cash used for operating
activities totaled $3.4 million for the nine months ended
September 30, 2004, as compared to $3.6 million for the nine
months ended September 30, 2003. These amounts are not comparable
because of the deconsolidation of Sun World in January 2003. Cash
used by Cadiz for operating activities totaled $3.4 million for
the nine months ended September 30, 2004 compared to $1.9 million
for the same period in 2003. The increased cash usage in 2004 is
primarily due to a greater loss incurred by Cadiz in the 2004
period.

     CASH USED FOR INVESTING ACTIVITIES.  Cash used for investing
purposes in the nine months ended September 30, 2004 was almost
entirely the $1.4 million paid for interest on the ING loan from
the restricted cash account, while in the prior year the cash
provided of $0.2 million was cash received from repayment of a
loan to an officer.

     CASH PROVIDED BY FINANCING ACTIVITIES.  Cash provided by
financing activities totaled $0 for the nine months ended
September 30, 2004, compared to $1.9 million in 2003.  In the
2003 period, cash inflows resulted from the issuance of a $200
convertible note  and $1.7 million from issuance of stock by
Cadiz.

OUTLOOK

     SHORT TERM OUTLOOK.  The proceeds of our 2003 private
placements have provided us with sufficient cash to meet our
expected working capital needs through approximately May 2005.
$2.0 million of the proceeds of our December 2003 private
placement were used to bring current our outstanding interest
payments owed to ING under our ING credit facilities.  $2.1
million of the proceeds of our December 2003 private placement
were placed in a cash collateral account with ING in order to
extend the maturity date of the credit facility through March 31,
2005. These funds can be applied, if necessary, to the payment of
accrued interest due under our credit facilities with ING.  The
remainder of the proceeds from the 2003 placements are being used
to meet our ongoing working capital needs.  We expect to raise
additional working capital well in advance of May 2005 in order
to fund our working capital requirements beyond this date.
Additional working capital could be used partly for deposit in the
restricted cash account and lead to the extension of the ING loan in
accoradance with its currently existing terms and conditions.

     LONG TERM OUTLOOK.  In the longer term, our working capital
needs will be determined based upon the specific measures we
pursue in the development of our water resources.   Whichever
measure or measures are chosen, we expect that we will need to
raise additional cash from time to time until we are able to
generate cash through our development activities. 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.

NEW ACCOUNTING PRONOUNCEMENTS

     In March 2004, the consensus of Emerging Issues Task Force
(EITF) Issue No. 03-06, Participating Securities and the Two-
Class Method under FASB Statement 128,  was published.

                            Page 31

EITF Issue No. 03-06 addresses the computations of earnings per
share by companies that have issued securities other than common
stock that contractually entitle the holder to participate in
dividends and earnings of the company. Further guidance on the
application and allocations of the two-class method of calculating
earnings per share is also included. The provisions of EITF Issue
No. 03-06 were effective for reporting periods beginning after
March 31, 2004. The adoption of this guidance did not have a
significant impact on the Company's financial results of
operations and financial position.


ITEM  3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Information about market risks for the period ended
September 30, 2004 does not differ materially from that discussed
under Item 7A of Cadiz' Annual Report on Form 10-K for the year
ended December 31, 2003.


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 September 30, 2004. 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.   SECURITIES AND USE OF PROCEEDS UNREGISTERED SALES OF
          EQUITY

     NONE


ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

      Not applicable.

                            Page 32


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

     Not applicable.


ITEM 5.   OTHER INFORMATION

     Not applicable.


ITEM 6.   EXHIBITS

     A.   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

     B.   REPORTS ON FORM 8-K
          -------------------

     None.

                            Page 33


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                           November 15, 2004
    ------------------------------------------     -----------------
    Keith Brackpool, Chairman of the Board and     Date
    Chief Executive and Financial Officer

                            Page 34




</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>2
<FILENAME>exhibit31-1.txt
<TEXT>


   CERTIFICATION PURSUANT TO SECTION 302 OF THE
          SARBANES-OXLEY ACT OF 2002

I , Keith Brackpool, certify that:

	1.  I have reviewed this quarterly report on Form 10-Q of
      Cadiz Inc.;

	2.  Based on my knowledge, this report does not contain
      any untrue statement of a material fact or omit to
      state a material fact necessary to make the statements
      made, in light of the circumstances under which such
      statements were made, not misleading with respect to
      the period covered by this report;

	3.  Based on my knowledge, the financial statements, and
      other financial information included in this report,
      fairly present in all material respects the financial
      condition, results of operations and cash flows of the
      registrant as of, and for, the periods presented in
      this report;

	4.  The registrant's other certifying officer and I are
      responsible for establishing and maintaining
      disclosure controls and procedures (as defined in
      Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
      registrant and have:

		a)  Designed such disclosure controls and procedures,
		or caused such disclosure controls and procedures
		to be designed under our supervision, to ensure
		that material information relating to the
		registrant, including its consolidated
		subsidiaries, is made known to us by others within
		those entities, particularly during the period in
		which this report is being prepared;

      	b)  Evaluated the effectiveness of the registrant's
		disclosure controls and procedures and presented in
		this report our conclusions about the effectiveness
		of the disclosure controls and procedures, as of
		the end of the period covered by this report based
		on such evaluation; and

      	c)  Disclosed in this report any change in the
		registrant's internal control over financial
		reporting that occurred during the registrant's
		most recent fiscal quarter (the registrant's fourth
		fiscal quarter in the case of an annual report)
		that has materially affected, or is reasonable
		likely to materially affect, the registrant's
		internal control over financial reporting; and

	5.  The registrant's other certifying officer and I have
      disclosed, based on our most recent evaluation, to the
      registrant's auditors and the audit committee of
      registrant's board of directors (or persons performing
      the equivalent functions):

      	a)  All significant deficiencies in the design or
		operation of internal controls which are reasonably
		likely to adversely affect the registrant's ability
		to record, process, summarize and report financial
		information; and

	      b)  Any fraud, whether or not material, that involves
		management or other employees who have a
		significant role in the registrant's internal
		control over financial reporting.

Dated: November 15, 2004

                              /s/ Keith Brackpool
					---------------------------------
                              Keith Brackpool
                              Chairman, Chief Executive Officer
                              and Chief Financial Officer


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>3
<FILENAME>exhibit32-1.txt
<TEXT>


STATEMENT PURSUANT TO SECTION 906 THE SARBANES-OXLEY ACT OF 2002
BY PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER


      I, Keith Brackpool, herby certify that, to my
knowledge, that:

      1. the accompanying Quarterly Report on Form 10-Q of
Cadiz Inc. for the period ended ended September 30, 2004 (the
"Report") fully complies with the requirements of Section
13(a) or 15(d), as applicable, of the Securities and
Exchange Act of 1934, as amended; and

      2. the information contained in the Report fairly
presents, in all material respects, the financial condition
and results of operations of Cadiz Inc.

      IN WITNESS WHEREOF, the undersigned has executed this
Statement as of the date first written above.

Dated: November 15, 2004


                              /s/ Keith Brackpool
                              ----------------------------------
                              Keith Brackpool
                              Chairman, Chief Executive Officer
                              and Chief Financial Officer


</TEXT>
</DOCUMENT>
</SUBMISSION>
