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<br />tIlchment 1 <br /> <br />. <br /> <br />. <br /> <br />Alternative Agricultural Transfers TRT <br />Alternative Aoricultural Transfers - Leoall Water Riohts /Institutionall Political <br />1. Are legislative/regulatory changes needed to implement the proposed program(s)? <br />_ What is/are the legal impediments in statute that require change in law for fallowing? Identify current impediments that exist in <br />legal and regulatory system to Alternative Agricultural transfers. <br />2. What is the water court process related to program(s) approach and implementation? <br />_ Do the same rules apply if the Municipal & Industrial user is from out of the state? (e.g., can a west slope irrigator fallow land <br />to lease water to Las Vegas or L.A. Metropolitan District?) <br />3. Should the programs be administered by the end user, governmental agency, or by the agricultural water rights owners or ditch <br />and reservoir companies? <br />4. Can the program(s) be successful if the agricultural user is not required to bind the land and water to irrigation? <br />_ What is the required permanency or certainty that a water supplier must require on an agreement for land fallowing? <br />5. What program conditions are needed to ensure that private property rights are not impaired? <br />_ What is the required permanency or certainty that a water supplier must require on an agreement for land fallowing? <br />6. Within a fallowing program, will the permanency for farmer and water provider be contractual? Providing certainty for the farmer <br />that land will stay in production and a water supply for water provider understanding that water may not be available to meet all <br />future growth? <br /> <br />Alternative Aoricultural Transfers - Financial <br />1. What are the costs to organize and administer a program and who are the parties that could contribute to the costs? <br />_ How can public and third-party beneficiaries by contributors to provision of those benefits (e.g., "leaks" and "inefficiencies" <br />that provide amenity, tax value, and environmental benefits? <br />_ Are annual payments made to only the agricultural users fallowing for that year or to all program participants? <br />_ Are there regional or statewide benefits to an interruptible or rotating fallowing program, such as preservation of open space <br />or providing for environmental flows? Should a portion of the program costs be borne by the public or third parties? <br />2. What portion of the total land and water rights value will need to be paid to an agricultural user as compensation for enrollment in <br />a program? <br />_ Are there additional incentives needed for agricultural users to participate in these programs when their rights can be sold for <br />large sums to Municipal & Industrial users? <br />3. How do the annual local economic impacts of a rotating fallowing program compare with a permanent dry-up that includes <br />voluntary payment in lieu of taxes? (Loss of local tax revenues for schools, government, etc.) <br /> <br />Page 3 <br />