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Another farmer may sell water to Southern California; On the Public Record runs some numbers

Posted by: Maven on December 31, 2009 at 7:35 am

From the Fresno Bee’s News Blog:

“Another farmer may be selling his irrigation water supply to Southern California for millions of dollars. And, again, it involves the Dudley Ridge Water District in Kings County.

The deal would involve the purchase of 884 acres of mostly stone fruit trees by Irvine Ranch Water District. The price would reportedly be $14.3 million, though it is not a done deal, say state officials.

The Irvine district would acquire access to 1,700 acre-feet of water from the State Water Project. One acre-foot — 326,000 gallons — would supply an average family for a year.

The other Dudley Ridge deal this year involved a Bay Area land and farming partnership called Sandridge Partners. The partnership agreed to sell $73 million worth of water rights to the Mojave Water Agency in San Bernardino County. … “

However, it’s not quite a done deal yet. More from the Fresno Bee News Blog by clicking here.

Meanwhile, the On the Public Record blog runs some idle calculations on the numbers, and concludes that the only difference between the two sales is:

” … that Irvine Ranch also bought the land. Since the two transfers are from one SWP contract with Dudley Ridge, they’re equally reliable. The conveyance costs are similar. So I am going to say that the difference in price comes from the value of the land.

($5,200 per acre for just the water right)/($8,400 per acre for the water right and the land) = 0.62 .

I’m thinking that the water right accounts for 62% of the value of agricultural land on the west side of the San Joaquin Valley. … “

More from the On the Public Record blog by clicking here.

December 31, 2009 · Filed Under Transfers

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