Value of water draws sugar beet growers

By PATRICIA R. MCCOY Idaho Staff Writer


NAMPA, Idaho – One acre foot of water will produce about two tons of alfalfa hay, making it worth about $200 to a hay grower.

It will also produce $45,000 worth of milk, which will produce about $250,000 worth of cheese. A grower can use it to produce 10 to 12 tons of sugar beets, which in turn produce $10 million worth of sugar.

A cheese factory can’t make cheese without milk, and cows can’t produce milk without hay. A sugar beet plant can’t produce sugar without beets, and that means that growers have to have water, said Bill Hazen, Gooding County extension agent.

The interrelationship of all these water uses makes it very difficult to put a value on an acre foot of water, Hazen told growers in Nampa Jan. 14 during the Snake River sugar beet Conference.

The real value of water is a major topic in Idaho now. Buying water rights and permanently retiring some lands from production is one part of the proposed Nez Perce Settlement for tribal water claims in the Snake River Basin Adjudication. It is also a proposed part of settling differences between water and surface water rights holders in the Eastern Snake Plain Aquifer.

The six south-central Idaho counties comprising Magic Valley contain 935,000 acres of irrigated land, less than 10 percent of the land area within those counties, and 21.9 percent of the state’s harvested cropland. The crops those lands within the six counties produce are worth $522 million, 39 percent of Idaho’s $3.9 billion total worth of crops, Hazen said.

“Crop sales average $558 an acre. Growers typically divert 5.45 acre feet of surface water to grow them, making that water worth about $106 an acre foot. Processed food products are worth $1.9 billion, which adds another $400 million to the value of agricultural products, and another $81 to the value of each acre foot of water,” he said.

“Next, you look at the 41,000 jobs in the Magic Valley that are tied to production agriculture, food processing or related jobs. That’s 51 percent of the jobs in the area. Divide that into the total number of acre feet worth of water our south-central Idaho growers use, and each job requires 120 acre feet of water,” he said.

Many of those jobs have already been lost to Idaho’s drought, which some say has been going on since 1988. Farms have borne the brunt of the resulting economic loss, Hazen said.

The extension worker hesitated to put an economic value on water in relationship to fish or tourism.

“It’s hard to get a handle on what tourism really is. Since I’m away from my home county today, chances are good I’ll buy a meal at some restaurant, and perhaps even a motel room for the night. When I live in-state, does that make me a tourist? I don’t know how to value that,” he said.

Hazen’s presentation was part of the general session of the conference, which followed the closed-door session of the Snake River Sugar Co.’s annual meeting. Water was a major theme, with presenters discussing the water supply outlook in Southern Idaho. Ron Carlson, regional manager for the Idaho Department of Water Resources, Idaho Falls, and Rick Wells, water operations manager for the U.S. Bureau of Reclamation, Boise, both said it’s too early to project what supplies might be for next summer, but described various scenarios that could result if supplies are above, at or below average.

Other speakers discussed whole farm revenue insurance and the Conservation Security Program available from the Natural Resources Conservation Service.

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Source:  Capital Press

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