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Section 3 <br />Alternative Agricultural Water Transfer Methods to Traditional Purchase and Transfer <br />legal for the transferred "consumable" water to be <br />used and reused to extinction. <br />3.4.1 Dynamics Leading to <br />Agricultural Transfers <br />There are a number of factors contributing to the <br />practice of acquiring and permanently transferring <br />agricultural water rights to other uses by M~eI <br />interests. These factors include: <br />The complexity and uncertainty associated with <br />developing future water supplies makes the <br />purchase of existing water rights more attractive. <br />Permitting may be simpler for such transfers than <br />for the development of a new water supply <br />project, since the agricultural water to be <br />acquired has already been diverted from the <br />stream system and a portion consumed This can <br />result in a higher level of certainty than <br />construction of a new reservoir storing junior <br />water rights where environmental issues and the <br />effects of new depletions will be evaluated. <br />irrigated agriculture. <br />3.4.2 Economic and Social <br />Considerations of Agricultural <br />Transfers <br />Traditional agricultural water transfers resulting in <br />permanent dry-up, though widely practiced in <br />certain areas of the state as a water supply option for <br />M~eI users, have several potential issues and <br />conflicts. <br />Localized socio-economic impacts, such as <br />reduced property taxes to schools and local <br />governments and less revenue to local businesses <br />may result from the permanent dry-up of <br />agricultural lands unless the irrigated lands are <br />converted to other productive uses such as <br />residential, commercial, industrial, recreation, or <br />income producing non-irrigated agriculture. <br />Irrigation of agricultural lands has historically <br />resulted in the development of a local economy. In <br />addition to supporting the farmer or rancher, the <br />associated economic activity may form the basis <br />of the entire economy of the local community. <br />This impact may be greater for more rural <br />agricultural areas. Many of these areas are <br />struggling due to the low returns currently <br />realized by farmers. These impacts can be <br />minimized; however, through the use of the <br />formerly irrigated land by a combined use of <br />dryland cropping and upland small game <br />enterprises or fishing. <br />3-6 FINAL DRAFT <br />