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<br />water not on the value of the crop that I am producing; this should be coming <br />from a revenue side; need to look at what we are willing to commit in revenue <br />dollars and then let individual farmers decide to voluntarily commit. <br />In 2002 or 2003, company leases out 3000 acft of reusable water, rental price <br />was 400 per acft; would think that this would be a lot; this was based on a real <br />flow; and we did not have much to lease to the municipalities; thus, the net <br />dollars that we had was not a success; thus, until the municipalities come out <br />to offer some real dollars to the farmers and ag, not much cooperation; of the <br />mind that the municipalities should own the water and then lease to the <br />farmers. <br /> <br />Jerke: Let's move into other ideas that we have before us that relate to the <br />same thing. Let's look at this from a big picture perspective. Look at what we <br />might want to support as per studies. And we will come back to this study. <br /> <br />IV. Discuss rotational fallowing/leasing opportunities <br />--Write-ups on Palo Verde and Lower Arkansas Valley (LA V) <br />Jerke: We should either invite people involved to come present or send people <br />out to see how this is working on the ground and do some studies on our own. <br /> <br />Joe Frank and Jim Yahn: Trip to Rocky Ford; met with Jay Winter, manager <br />of lower AK district; their study on "super-ditch" idea where 8 ditch <br />companies have come together and are studying pooling their water; each <br />company would have their historic yield; 65% participation in each ditch <br />company and on annual rotational basis, give 25% of ground, fallow, then put <br />that water into the pool; price is set, so will depend on how much water you <br />put in per how much you take out; they look at actual market values of leased <br />water in the state. <br /> <br />Jaeger: Nothing in the study is trying to set price; no offer; here, only question <br />is how to free up the water in the first place. <br /> <br />Joe Frank: Key is that the farmers and ditch companies stick together; thus, <br />negotiating power. <br /> <br />Jim Yahn: Interesting to look at this from a different perspective; it is sad to <br />visit Rocky Ford; not much in the town; not anything that I want to see in <br />Sterling; AK valley has come to realization that selling and drying up is not <br />best for the community so they are coming to point of trying to hold on to <br />what they have. In Sterling, we do have an industrial lease with XCEL and <br />we have stuck together and are hoping that what we have leased will make us <br />profitable. Not opposed to this, because it is another mechanism that farmers <br />could use; farmers must make the decision. <br /> <br />Jerke: Is this level of study clearly needed, or can we learn from others? <br /> <br />6 <br />