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to occur on rotationally fallowed lands, but little information exists on the technical <br />aspects of this farming practice. Conducting demonstrations "on the ground" in the <br />context of working farms is a proven approach for documenting and quantifying <br />emergent challenges inherent to untested strategies. As upland snowpack volumes and <br />future water availability affect the water shares desired by municipal and industrial <br />interests, for instance, these variables in turn will influence the acreage sought from <br />agricultural areas for fallowing. Demonstration of leasing amid these variables will help <br />document the economic and technical impacts of fallowing for different periods. When <br />deciding whether to enter a lease arrangement, farmers need this information in order to <br />accurately calculate the market value of their water shares, relative to the value of <br />continuing to farm in a time when we see corn prices steadily on the rise. <br />Discussion: <br />Staff believes the proposed projects meets the evaluation criteria and the expected benefits. <br />In the analysis, staff was most concerned that this study was a research study that may or <br />may not produce transferable information advancing alternative methods to permanent <br />agricultural water transfers. Upon review and after discussing with the applicant, the project <br />is closely tied to the Lower Arkansas Valley WCD's Super Ditch Project. In fact, this <br />project was one of the tasks eliminated from the LAVWCD's scope of work after receiving <br />reduced funding from the Board at the May 2008 meeting. <br />The applicant stated that this study will be incorporated into the final report produced by the <br />LAVWCD's for the Super Ditch project which provides the necessary `completeness' from <br />staff s perspective to ensure that this effort will truly be used by others within the valley and <br />hopefully beyond. Most farmers will have legitimate questions regarding the management <br />costs and risks associated with fallowing land that would otherwise be in production. This <br />study promises to help provide them with the necessary answers regarding these <br />management and operational costs. <br />Issue/Additional Needs: <br />• The budget includes costs for a conference. If approved by the CWCB, these hinds <br />are not to be used for this expense. <br />• Please provide a commitment from the LAVWCD that the results will be incorporated <br />in the Super Ditch project's final report. <br />2