Colorado Cattlemen's Association Lease Assessment Survey

The Lease Screening decision support Tool helps ag water right holders assess the potential of leasing their water rights for other uses. The tool is based on characteristics of successful ag water leases that are operating in Colorado.

What is agricultural water leasing? An ag water lease provides water for other uses (municipal, industrial, etc.) while enabling the ag water right holder to maintain ownership of the water right. The lease arrangement is voluntary and temporary, and the water right holder is compensated for the water leased. Ag water leasing is also referred to as an 'Alternative Transfer Mechanism' (ATM).

Only consumptive use (CU) water can be leased. The consumptive use (CU) amount is that portion of diverted water that is actually used by the crop and/or forage via evapotranspiration. The Historic Consumptive Use (HCU) of a water right is based on the consumptive use of the crops or forage grown over a period of time.

Why is ag water leasing important? The Colorado Water Plan encourages ag water leasing as a way to avoid permanent “buying and drying” of more irrigated agricultural land. Colorado's population could reach nearly 10 million by 2050. Increased demand for water by the municipal and industrial sectors could cause the loss of up to 700,000 acres of irrigated ag land. This amount represents about one-fourth of all irrigated ag land in Colorado, and would have serious and lasting impacts on rural communities, counties, jobs, schools, wildlife and the environment. The Water Plan sets forth a goal of 50,000 acre-feet to be leased from agriculture to the Municipal / Industrial (M & I) sectors annually. The Water Plan also calls for a substantial increase in conservation by the M & I sectors, and increased storage of water, both above ground and below.

Who can use the ag water Lease Screening decision support Tool? Anyone can access and utilize it, however, the Decision Support Tool was designed for surface irrigation water right holders in Colorado who are interested in getting a better understanding of how suitable their water rights are for leasing. There are several leases going on Colorado already. Most of them involve mutual ditch companies that are leasing water for M & I or aquatic life support uses. There are also numerous water leases ongoing between ag water right holders and the oil and gas sector.

Questions or Comments? Contact the Ag Water NetWORK Consulting Coordinator, or CCA/PWC at 303-431-6422.

Ag Water Lease Decision Support Tool

First Name

Last Name

Mailing Address

Address

City

State

Zip

Physical Address

Address

City

State

Zip

County

Phone Number

Email Address

Water District
Map of DWR Divisions and water districts

Water Right Name or Number (input up to three). If unknown, contact your DWR Division office or water commissioner.

Water Source (stream, river, lake, spring, ditch, well, etc.)

Ditch Company Name (if applicable)

Interest in leasing ag water

Question

Options

Value

Reason

River Basin that you are located in

Demand for water varies by basin and within basins.

Type(s) of Irrigation Water Right(s) (from largest volume to smallest)(click the "+" sign to add a category)

Having a large water portfolio, such as those held by some ditch companies, helps guarantee leased water can be provided even during droughts. Large individual water rights can also have significant appeal to a potential lessee, especially if the water right is very senior to other rights in the basin.

Own Reservoir Storage Rights? If on a mutual ditch; answer "Yes"

Storage rights are useful in facilitating water exchanges and help ensure that leased water can be delivered even during drought periods.

If you answered "Yes" to the question above, is the reservoir shared by, or upstream of a municipality, industry or water-based recreational use?

Storage rights located upstream of, or shared by a municipality can help facilitate simplified water exchanges between the parties.

How many acres do you irrigate?

The greater the number of irrigated acres, the greater the potential to 'free up' a significant amount of water for leasing.

Do you irrigate crops, forage or both?

Fallowing or deficit irrigating hayland and pasture may require significant management adjustments (herd reduction, hay purchases, pasture recovery period).

Irrigation methods used (based on acres irrigated from most to least)

Any irrigation method can accomodate leasing, but more expensive irrigation methods (subsurface drip) may reduce financial viability of leasing due to the ROI needed.

Do you...

Own surface water right(s) near an instream flow right? (CWCB in-stream flow right locations)

Leases are easier to facilitate if the leased water can be delivered using existing streams, rivers,ditches or pipelines.

Have surface water diversion point(s) near a municipality, power generating station or oil/gas extraction site.

Proximity to demand sources positively correlates with leasing potential.

Own a potential aquifer recharge / groundwater storage area?

Like surface storage, under ground water storage can help guarantee leased water can be provided during droughts, and can help facilitate exchanges.

Do you or your water supplier (ditch co, etc.) lease / purchase supplemental water from others to meet irrigation needs?

Never or rarely needing to lease water from others suggests a senior decree date with adequate volume even in dry years.

During the recent droughts (2002, 2012) how much water did you have for irrigating?

Having all or most of your usual amount of irrigation water available even during a drought increases potential lease appeal.

Appropriation date of oldest water right(s).

Older water rights have use priority over younger water rights, and are more highly valued by potential lessees.

Decreed amount of oldest water right(s) (cfs or acre-feet).

An actual ag water leasing opportunity can only be determined by thoroughly evaluating the water right(s) and the site-specific characteristics that influence the ability to deliver water for other uses.

For details on the criteria used to compute your rating score, click here Rating Criteria

Factors Influencing Ag Water Lease Potential Ratings

GOOD	MODERATE	LIMITED
Water right is located in the Colorado, Arkansas, or South Platte River Basin	Located in the Rio Grande, Yampa, or SW River Basins	Located in North Platte River Basin
Mutual ditch company shareholder	Private ditch company shareholder or surface water right owner.	Groundwater permit only
You own storage rights (either individually or through mutual ditch co.)	May / may not have storage rights	No storage rights
Own storage rights upstream of /or shared by municipality or other non-ag water interests	May / may not have storage rights near municipality, other water interests	Not near municipality, other water interests
Irrigated acreage exceeds 300 acres	Irrigated acreage is at least 200 acres	Irrigated acreage is at least 100 acres
Irrigate crops	Irrigate crops and/or forage	Irrigate forage only
Flood or furrow irrigation used	Pivot, sideroll, surface drip irrigation	Subsurface drip irrigation
Never need to lease water from others to meet irrigation needs	Rarely need to lease water from others to meet irrigation needs	Occasionally or frequently need to lease water from others to meet irrigation needs
Had adequate water to fully irrigate during recent droughts	Had at least 75% of usual amount of irrigation water during recent droughts	Had less that 75% of usual amount of irrigation water during recent droughts
Surface water right(s) is near an instream flow right	Surface water right(s) may be near an instream flow right	Surface water rights are not near an instream flow right
Have surface water diversion point(s) near a municipality, power generating station or oil/gas extraction site	May/ may not have surface water diversion point(s) near a municipality, power generating station or oil/gas extraction site	Do not have surface water diversion point(s) near a municipality, power generating station or oil/gas extraction site
Own a potential aquifer recharge / groundwater storage area	May / may not have a potential aquifer recharge / groundwater storage area	Do not own land that could serve as a potential aquifer recharge / groundwater storage area
Water right appropriation date is senior to river basin interstate compact date and most other water rights	Water right may be junior or senior to compact date and senior to many newer water rights	Water right decree date is junior to the river basin interstate compact date
Decreed amount of water right is at least 3 cfs or 450 AF	Decreed amount of water right is at least 2 cfs or 300 AF	Decreed amount of water right is at least 1 cfs or 150 AF

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