News Feature | September 28, 2021

With Farmers Left Dry For Weeks, Oregon Considers Water Lending Programs

Peter Chawaga - editor

By Peter Chawaga

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As the ongoing scarcity of source water plagues the Western United States, Oregon’s agricultural industry now represents what may become a new normal for many — a system in which some have access to water while others are rationed or cut off completely based on their legal claims.

“As drought ravages the West, the districts with century-old water claims are first in line for the scarce resource while others nearby with more recent claims have already run out,” reported OPB, which added that some Oregon farmers have gone weeks without access to irrigation water. “The stark contrast between the haves and have-nots two hours southeast of Portland has brought new urgency to efforts to share water. Proposals to create ‘water banks’ or ‘water markets’ would allow farmers with excess supply to lease it to those in need. The idea is part of a discussion about letting the free market play a bigger role in water conservation as human-caused climate change fuels drought and farmers run out of options.”

But while water banking or market solutions might help spread the little available water more equitably, they are not necessarily very popular with farmers in Oregon, who don’t seem to appreciate similar systems that have been put into place.

“Many farmers worry that if they lease their water rights, even temporarily, they may not get them back,” per OPB. “The districts oversee water deliveries to customers and often operate as fiefdoms, each with water claims and history. Outdated infrastructure and bureaucracy — often compounded by rigid state laws — make water transfers difficult even between cooperating districts.”

Regardless of how these systems may have worked to date, Oregon’s acute source water scarcity issue may compel their growth in the future.

“All of Oregon is experiencing drought, most of it ranging from severe to exceptional, the worst category,” according to Oregon Live.

It’s possible that Oregon, or other states exploring the growth of water banks, will look to California as a model, where drought is persistent and this model has been relatively successful in sustaining a massive agriculture market because of the state’s flexibility, ease of water transfers and protections of water rights for those who lease it.

As of now, the state’s Deschutes River Conservancy and Central Oregon Irrigation District are looking into launching a water bank that would offer financial incentive to farmers with extra water to lease or return it to a source body. This may result in a pilot as soon as next year and could yield much needed access to water.

“A recent study says about 164,000 acre-feet of water may be freed up by using price incentives,” OPB reported. “An acre-foot of water is enough to cover a football field a foot (a third of a mater) deep.”

It’s clear that in Oregon and beyond, farmers and consumers are in need of more drinking water sources. The growth of innovations like water banks is all but inevitable, and they are a trend for water systems of all sizes to keep an eye on.

To read more about how drought affects water systems around the country, visit Water Online’s Source Water Scarcity Solutions Center.