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arrangements and the speed which land can be brought back to production after it has been <br />fallowed. The future value of crops grown is necessary for a complete understanding of <br />rotational fallowing impacts because it is linked to the value of water on th e irrigated acreage. <br />Previous Studies . When the state legisla tion in 2006 allowed farms to be fallowed for 3 out of <br />10 years under lease programs, the Lower Arkans as Valley Water Conserva ncy District proposed <br />a direct test of the impacts. The proposed proj ect will expand trials currently underway to sites <br />on farm operations. The trials to determine the effect of fallowing land for 1, 2 or 3 years was <br />initiated by the Colorado State University Arka nsas Valley Research Center in 2007 with corn <br />( Zea mays L.) as the index crop. The study looked at the effect on yield, nutrient needs and the <br />economics involved in maintaining or improving yiel ds on fallowed fields that had been returned <br />to corn production, and compared these results to fields where continuous corn had been planted <br />over a four-year period. Early results of the stud y indicate that if the fallowed land is managed <br />properly by letting weeds grow a nd then shredding them close to the ground to help prevent soil <br />erosion, for example, nutrients are still av ailable in the soil for the next season. <br />Study Area/Service Area Description . At least three growers us ing furrow irrigation systems <br />supplied by surface water and located throughout th e Lower Arkansas Valley would be involved <br />in the establishment of demonstration site s near Pueblo, Rocky Ford and in the Las <br />Animas/Lamar area. Each grower would be asked to furnish approximately 10 ac of land that has <br />been farmed with identical croppi ng and management practices in 2008. <br />Program/Project Eligibility . Data gathered from each farming operation will be used to calculate <br />the enterprise budget for each 10 ac field for each year of the study. These budgets will be <br />compared to the income, costs, and profits for a 10 ac continuous corn area, which would occur <br />in the absence of the leasing program. By co mparing the economic returns from the continuous <br />corn system and the rotational fallowing system each year, the lease price for water necessary to <br />maintain profitability under the different rota tional arrangements will be calculated. Based on <br />assumed amounts of leased water, the effect of this leasing of water could be projected to <br />determine effects on the local economies. This st udy will also provide needed information on the <br />yield effects of having rotated acr eage out of irrigation and then pl anting it back to an irrigated <br />crop. Because the study is proposed to occur over a 4-yr period, it will provide this information <br />for fields that have been fallowed for 1, 2, and 3 years (since the entire acreage will be returned <br />to corn in Year 4). Additional benefits coul d include reduced soil erosion due to irrigation, <br />reduced salts, selenium and nitr ates in the groundwater aquifer due to a reduction in leaching and <br />more profitability for the farmer due to reduced equipment, fertilizer, seed and labor costs. <br />Program/Project Evaluation Criteria . Agricultural water rights lease arrangements could <br />possibly improve the economic st ability of the farming towns in the Lower Arkansas Valley <br />because farmers could still retain much of thei r land in production, fallowing only the necessary <br />acres to meet the needs of the leasing agreements . Under such arrangemen ts, water rights would <br />be shared by the owner and lessee, thus allowing some control of the right to still be held locally <br />in the Valley. Income from the leased waters ma y also allow farmers to improve their operations. <br />The Rocky Ford Highline Canal Company, for exam ple, initiated a leas ing program that has <br />proven beneficial in helping pr ovide water to Aurora and Co lorado Springs, while providing <br />farmers extra money for new equipment, genetic ally improved seed and improvements for their <br />irrigation systems to help reduce labor and mainte nance costs. Moreover, when the fallowed land <br />is irrigated again, during years of adequate wate r supplies, monies would be spent locally for <br />