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Alternative Agricultural Water Transfer Methods -Grant Application Form <br />January 2008 <br />contribute their experience and expertise to the development of the Business Plan tool and other <br />aspects of the project. The C?JRRI has sponsored, completed and disseminated research examining the <br />economic contribution that irrigated agriculture makes to rural communities. In particular, Thorvaldson <br />and Pritchett (2006) found that the economic activity generated by a single acre of irrigated cropland in <br />the proposed study area is nearly $700. The authors' accounting included the direct economic activity <br />generated from crop sales, the indirect activity associated with inputs that support crop production <br />including seed, fertilizer and services, and the induced economic activity resulting from wages spent in <br />the local community. However, the study did not include the economic activity of downstream <br />industries such as feedlots, ethanol plants, dairies and cheese manufacturing -sectors of significant <br />importance in the basin. Likewise the authors completed their work prior to the substantial increase in <br />commodity prices and input costs. Thus, the economic activity generated by an acre of irrigated <br />cropland is likely to be higher than in the 2006 study. The authors also noted that "threshold effects" are <br />not considered in their study but may be a real threat; that is, significant reduction in irrigated <br />production may sufficiently reduce economic activity such that businesses must relocate. <br />In addition to the previously mentioned study, CIRRI affiliated faculty have been seeking alternatives <br />to large scale "buy and dry" activity. As an example, a team of researchers is considering the agronomic <br />and economic implications of limited irrigation strategies among small grains and forage crops, as well <br />as the longer term impacts of rotational fallowing in the South Platte Basin. In addition, opportunities <br />for agricultural conservation have been explored in a recent white paper by ?Xlaskom and Brown. <br />2. Study ArealService Area Description <br />Three actual alternative agricultural water transfer projects will be evaluated under this grant, which will <br />provide a basis for developing and testing the Business Plan of extending practical utilization of <br />alternative agricultural transfer projects throughout Colorado. These three alternative agricultural water <br />transfer projects will be selected from a list of projects being considered by DU in the South Platte <br />River basin. <br />In order to respect the privacy of landowners with whom DU is working, DU is hesitant to divulge the <br />specific locations of future projects. However, DU has developed several projects along the South <br />Platte River from which real historic information maybe derived and that will allow the development of <br />new strategies for existing projects to deliver water credits to municipalities, such as DT Ranch near <br />?Xleldon. In addifion, DU is developing new projects in the ?1eld County area east of Platteville which <br />will provide a working demonstration for future projects. Some of the projects to be considered include <br />several being developed in cooperation with Central Colorado mater Conservancy District (CC?CD). <br />?e may also be able to use the ?1eld County School District Project, funded in part by the C?CB last <br />year, to demonstrate the cooperative benefits of working with farmers, school districts (which could <br />substitute as a small municipality) and other water users throughout the CC?ICD. <br />9