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04 <br />Option 1: Conservation cropping <br />At this time, it has been assumed that participating farmers would be compensated with <br />payments per ac -ft conserved on -site comparable to estimates for short-term leasing <br />arrangements. On an annual basis, the cost of a leasing program was estimated to range <br />from about $80 to $190 per acre -foot of consumptive use saved on -farm. Therefore, the <br />total annual cost for conservation cropping is estimated to range from $620,000 to $1.5 <br />million based on an average annual reduction in consumptive use of about 7,700 ac -ft. <br />Option 2: Deficit Irrigation <br />Based on NRCE data regarding corn production, the estimated annual impact on farm <br />revenues from the representative deficit irrigation program would be $90 to $100 per <br />participating acre planted in corn. An incentive premium of 40 percent has been added to <br />induce farmers to participate in the program. In addition, an annual administrative cost of <br />$20 per participating acre has been included. The total average annual cost per <br />participating acre is estimate to be about $150. Based on an estimated total of about <br />16,500 acres participating in the program, the annual cost would be about $2.5 million. <br />Option 3: Land Fallowing <br />The annual cost of a representative land fallowing program was estimated based on the <br />following components: <br />OQption 4: Changes in Irrigation Techniques <br />During the past seven years, CNPPID has calculated the average annual cost of these <br />measures based on its program to implement on -farm conservation improvements at $217 <br />per acre foot reduced on -farm deliveries. There is uncertainty regarding the use of this <br />cost for the following reasons: 1) This cost may not apply to this analysis because it <br />includes some items which are not incremental changes over the pre- improvement system <br />(such as water delivery costs) and excludes some incremental costs to the landowner <br />(such as production reduction in pivot corners), and 2) The validity of the method used to <br />estimate the quantity of water saved by on -farm improvements is continuously being <br />evaluated by CNPPID's Conservation Task Force. <br />\\DN00\E- DRIVE \PROJECTS\Platte \Work Products\Task 9 \wapc report (Version 7).doc 33 <br />• Annual value of irrigated lands. This value for the region as a whole is estimated to <br />be between $100 and $110 per acre based on annual net income to farmers and <br />irrigated land rental rates. <br />• An incentive premium of 25 percent to induce participation. <br />• Administrative costs, which average $20 per acre fallowed. <br />On an annual basis, a land fallowing program was estimated to cost an average of about <br />$150 per acre. Based on an estimated total of 7,800 acres participating in the Program, <br />the annual cost was estimated to be approximately $1.2 million. <br />OQption 4: Changes in Irrigation Techniques <br />During the past seven years, CNPPID has calculated the average annual cost of these <br />measures based on its program to implement on -farm conservation improvements at $217 <br />per acre foot reduced on -farm deliveries. There is uncertainty regarding the use of this <br />cost for the following reasons: 1) This cost may not apply to this analysis because it <br />includes some items which are not incremental changes over the pre- improvement system <br />(such as water delivery costs) and excludes some incremental costs to the landowner <br />(such as production reduction in pivot corners), and 2) The validity of the method used to <br />estimate the quantity of water saved by on -farm improvements is continuously being <br />evaluated by CNPPID's Conservation Task Force. <br />\\DN00\E- DRIVE \PROJECTS\Platte \Work Products\Task 9 \wapc report (Version 7).doc 33 <br />