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A water marketing presentation provided to the Montana Farm Bureau Federation in Summer 2010. The objective of the presentation was to provide an overview of water marketing to the water committee members, so they better understand anticipated water marketing policy in state of Montana.
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water marketing in montana
Chris Corbin
“He hit him a couple clips with the shovel and a scuffle ensued.”
-Green Fields of Montana
water resource management
montana water trust
chairmanbitterroot
water forum
MBA wr specialist
consultant, freelance marketer, entrepreneur
Chris Corbin
moose drool
business acumen water ingenuity
Differentiation
water marketing
buying and selling in a market
Water runs with the land?
1895
water rights
property of the state for the use of its people . . .
water
right to use water
water right
water rights are assets
water markets
supply and demand
“The West is the fastest growing part of the country. It is also the driest.”
- National Geographic Magazine
physical supply
Steve Running (2009)
Steve Running (2009)
regulatory supply
more valid water right claims than water is available . . .
over appropriated
Basin closure
3
Mitigation and Aquifer recharge
20 AC-FT 1. Aquifer Recharge
2. Mitigation
Future water demand will be met or mitigated by existing water rights.
water market demand
In Montana and other states, competing demands for water are driving water marketing discussions.
-Water Policy Interim Committee
Agricultural
Urban & IndustrialEnvironmental
Gallatin County
Agricultural
Environmental
Urban
Missoula County
Agricultural
Environmental
Urban
Ravalli County
Agricultural
Environmental
Urban
169,886 irrigated acres
USDA, Economic Research Service (2009)
297 miles of blue and red ribbon streams226 miles of dewatered streams
Montana FWP, 2009
59% growth since 1990
Montana CenusÓ US Census Montana Census. (2009) 6 April 2009 http://www.census.gov/
Agricultural
Urban & IndustrialEnvironmental
water market transactions
Agricultural
Transaction #1
never trust a water right
Transaction #2
Sale $ per AC-FT?
The value of water is what someone is willing to pay for it.
Transaction #3
Water Right Lease
make sure you get the water!
Agricultural
Environmental
Transaction #4
Lake Mary Ronan
Flathead Lake
Good deals create win-win outcomes.
Agricultural
Urban & IndustrialEnvironmental
Transaction #5
Missoula: 1901
Missoula: Now
Missoula
Urban
A SharesB Shares
Restructured Shares
80%
20%
20% reduction in revenue
Agricultural
agricultural
Agricultural
Environmental
Environmental
Environmental
Agricultural
Urban & IndustrialEnvironmental
Urban
Water Marketing
Agriculture 80%
mitigation20%
Agricultural = A shares
Urban & Industrial = B sharesEnvironmental &
Grass Valley French Ditch CompanyRoots
