Arkansas - Model Transfers Ag to Urban in the Arkansas Basin_Application

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Water Supply Reserve Account - Grant Application Form Form Revised May 2007 2. V ARIOUS IDEAS AND INNOVATIONS FOR MITIGATING THE EFFECTS OF WATER LEA VING AGRICULTURE FOR CITIES (We struggle with the word "mitigation" because of historic negative connotations.) From the point of view of funds for agri-business transformation/modernization · Can mitigation ideas and innovations be conceptualized which would provide funds (and/or leverage available grant funds) for helping farmers make the switch to higher value crops, or to select different crops which help them adapt to climate change as well as economic change? To help them capitalize on mounting consumer interest in shifting from industrialized "commodity" and high transportation cost food to locally grown/raised food? To assist them in developing alternative markets, not just locally produced foods, but other niche markets such as goat meat for ethnic communities desiring it but not able to find it? Funds to encourage present innovators and breed new ones? From the point of view of funds for fural economic development · What mitigation should be made available to maintain or even enhance the viability of rural communities beyond making up the difference in taxes lost when previously irrigated land is "dried up?" · Can mitigation ideas and innovations be conceptualized which would provide funds (and/or leverage available grant funds) for helping rural communities visualize what they want for their future in view of water transfers from ag (instead of just focusing on what they don '( want?) · Can selling/leasing farmers work with buying/leasing cities and with rural communities to conceptualize ways to draw in visionary private enterprise individuals who might be willing to bring capital into rural communities for innovative private ideas and innovations if basic infrastructure and "quality of life" components such as health care were improved? Value- added enterprises both ag and non-ag related? Bring in high level economic development gurus who can get the links to economic pipelines to bring in the needed economic development? · What are the variety of mitigation ideas and innovations which could be conceptualized? The idea is to address the impacts of water transfers. Water transfer severance tax or fee with different tiers for different kinds of transfer, i.e. significantly higher fee for out of basin transfers? One time fee or continuing over time? Brokering agency to use these fees for both modernization and rural economic development? Small fee on all water bills municipal and rural to fund mitigation? Other mitigation means other than cash, such as cities agreeing to "farm out" their utility billing departments to rural communities thus providing jobs in those communities? Instead of (or in addition to) payment in lieu of taxes should we be looking at "jobs in lieu ofwaterT · Are there ways to work out deals without outlay of cash? For instance call rural assets such as lack of air pollution, land without large populations, good schools, etc. be combined with municipal assets such as capital borrowing capacity to build positives for both? · Should communities be required to use mitigation funds for something directly related to the loss of water or for any purpose which enhances the community? If communities are not negatively affected, should they get mitigation payments anyway? Should the amount of mitigation funds paid be directly related to the degree of negative impacts? How can negative impacts be measured? Should "bonus" mitigation be provided if sellers/leasers from 8