Arkansas - CSU - EffectLandFallowing_Application_Nov2008

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Alternative Agricultural Water Transfer Methods -Grant Application Form January 2008 Project Importance. Alternatives to selling agricultural water rights must be promoted and demonstrated in the Valley, where water has been permanently transferred to municipal interests along Colorado's Front Range for decades, Compounded by recurrent drought conditions, the transfer of these water rights has resulted in thousands of farmland acres being removed from production, In the aril climate of the eastern Colorado high plains, this land has limited agricultural productivity and, inmost instances, experiences erosion and weed problems if dry-land production (i.e., non-irrigated, grazing) is not feasible. This "buy- and-dry"approach to water acquisition has severely underminedthe rural economiesand communitiesof the Lower Arkansas River Valley, Crowley County, for example, has been dubbed a "poster child" for agricultural land dryup, having a substantial amount of its 50,000 irrigated farmland acres as a result of water rights sales to Pueblo, Colorado Springs and Aurora. Permanent dryup of farmland, in such cases, substantially reduces the tax base for operation of schools, roads and other services supported by local taxes. The proposed project, therefore, is highly important to the Ualley and its farmers, who are faced with pressing decisions regarding the future use of their water rights and the economic livelihood of their communities. Anew "crop" in theform of water gives farmers anadditional sourceofmuch needed revenue to both the farm and their communities. Income from the leased waters also allows farmers to improve and reinvest in their operations and local community businesses, Agricultural water rights leasing is one strategy, therefore, to improve (or at least stabilize) the economic conditions of farming towns and rural areas. Employing this strategy also affords farmers the opportunity to retain much of their land in production, fallowing only the necessary acreage to meet the needs of leasing agreements, Under such arrangements, water rights would be shared by the leaser and lessee, but control of the right is held continually in the Valley, This program is also very important to both CSU Extension and the AVRC. The role of these entities is to provide technical and educational assistance to farmers, Water leasing arrangements are now a predominant topic in the Valley, and likely to become a major activity in the near future, CSU outreach and research efforts have a vital role to play, therefore, in supporting programs to examine the critical details of water leasing. Previous Studies To the maximum extent possible, the results of any previous studies and investigation should be utilized and incorporated into the proposed program/project. The application for funding should include a brief summary of the results of previous studies and how they will be utilized. Previous Studies. Woodka (2008) in the Pueblo Chieftain summarized a recent survey of South Platte River irrigators conducted by CSU agricultural economist Prof. James Pritchett. Results indicated that 63% of interviewed farmers would be willing to participate in rotational land fallowing programs, if compensated adequately, The operative question is, "What is adequate?" The results of the proposed activities will provide basic information to lessees (water-rights holders) on the value of water leasing, and the costs of associated management requirements. This information helps to quantify the value of water shares needed to adequately compensate active farmers who wish to participate in leasing arrangements. Demonstrating these arrangements underworkingconditions, subjecttothe influenceofcorn markets, municipal demand for water shares, and climatic variability, will provide information with regional value to farmers regarding the viability of leasing, The Lower Arkansas Valley Water Conservancy District commissioned a feasibility study of water leasing through 7