SWSI AlternativeAgriculturalTransfersTRTDraftWhitePaper

• Technical Roundtable: Agricultural Transfer
• Title: SWSI - Alternative Agricultural Transfers White Paper
• SWSI II - Doc Type: White Papers

CDIVI

SWSI Phase 2 Technical Roundtable
Agricultural Transfer Alternatives to Permanent Dry-up

Water Banks

In addition to permanent agricultural transfers, water banks have been authorized by
the Colorado legislature. A pilot program was established in the Arkansas Basin. The
water bank provides a mechanism for leasing water on a short-term basis without
permanently transferring a water right to another user. Entities with stored water
rights have the options to lease their water during times of drought or when it will
not be put to beneficial use.

The benefits of water banks include:

. Water supplies are improved for users acquiring water from the water bank.
Agricultural use can be preserved by allowing alternative uses on an interim basis,
without a permanent dry up.

. A better or more stable income to agricultural users can be provided, since the net
income from a lease can exceed the revenue that would be realized from farming in
a dry year.

. Provides for flexibility in water management, as there is a free market mechanism
through which water supplies can be transferred within a basin.

The potential issues and conflicts with the use of water banks for meeting future
water needs include:

. Water may not be available to "deposit" and/ or "withdraw" from the water bank
when needed. There is no guarantee or requirement for a party to place its water in
a bank.

. Determination of transferable amount can be complicated and other water users
must be protected.

. Soil, weed, labor, and equipment management issues must be considered during
those years when irrigation is not occurring.

. There are significant challenges in starting a successful market. An entity needs to
be responsible for implementing advertising and maintaining the Bank. Historically
water banks have not been accessed by potential water users.

. Water leasing, a less formal water banking process, occurs in most basins, but has
not resulted in the reduction of acquisition and dry up of agricultural land.

Reduced Consumptive Use through Changes in Irrigation Patterns or Crop
Types
It is possible that changes in crop types, irrigation application methods, or timing of
irrigation can result in a reduction of historic consumptive. This reduction is CU
could be transferred to another use. Colorado State University has conducted research
on the yields of alfalfa with limited irrigation and the resulting reduced consumptive
use (Professor Dan H. Smith, 2005 Colorado Water Congress Annual Convention).
Limiting irrigation of alfalfa to the early irrigation season has the potential to result in

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