Water Rights and Land Values in the West-Central Plains

Irrigation is vital to the economic activity of the west-central Great Plains. The crops grown, the distribution of center-pivot irrigation systems, and the basic transportation infrastructure is the same in northwest Kansas, northeast Colorado, and southwest Nebraska. But buyers of agricultural land face a different price for irrigated cropland in each of the states, even when the production characteristics of the land are similar. After accounting for factors like productivity and local property tax differences, we argue that it is the difference in water marketing rights between the three states that explains the price difference. The link between land values and water marketing rights is statistically developed by using Ordinary Least Squared (OLS) regression techniques. After adjusting for differences in property taxes, the analysis reveals that the implicit value of full water-marketing rights in the region is approximately $1,026 per acre. This valuation is within the range of estimates provided by other comparable studies across the country.

Northeast Research and Extension Center VIP Tour

What a pleasure it is to be with you all tonight as we celebrate achievement! It is always a joy to me to see good work, hard work, work that matters, recognized. We certainly had the opportunity to see work that matters on today's tour, and I thank our Northeast Research and Extension Center faculty for all their research and extension efforts that further our land-grant mission. I also thank the staff of the Center for their good work in support of this mission.