Q2 2019: Premium for Buying Water
Capitalization rates, or “cap rates”, are a commonly used metric in evaluating real asset investments, such as farmland and real estate. Investors pay close attention to cap rates to understand the potential for annual revenue relative to the investment cost. The most recent issue of the Water Market Insider defines and discusses the role of […]
Q4 2017: Water Markets in the Ogallala Aquifer
The Ogallala Aquifer is one of the largest groundwater basins in the United States, underlying eight states and supplying over 30% of the groundwater used for irrigation in the entire United States. Roughly $7 billion worth of crops are grown each year with groundwater supplied by the aquifer. The Ogallala Aquifer is quite stratified, both […]
Q2 2017: New Water From Old Power
The U.S. has seen several coal power plant closures in recent years with many more on the way in the next 10 years. Coal power generation is considered to be relatively inexpensive, but it does demand a large amount of water compared to natural gas plants and renewable energy sources such as wind and PV […]
Q1 2017: Water Market Outlook
There is money to be made in the water market, but it does not always come easy. Growing demands for water supplies across the United States has given further focus to water rights as an asset. Over the past ten years, the water rights market has become an increasingly attractive private investment, but water transactions are often […]
Q1 2016: Colorado’s South Platte Basin Water Rights Market
The water rights market in Colorado’s South Platte Basin is one of the most active in the United States. This basin encompasses the northeast quadrant of Colorado. To address this spatial divide between water supply and demand, Front Range agricultural, municipal, and industrial water users have looked to market transactions of water rights to accommodate […]
The Value of Irrigated Agriculture in the Western States
Water carries significant value for agriculture in the West. Agriculture is the largest water user in the region, representing over 80% of total use. The sector is also an important part of the West’s economy, generating more than $90 billion in total farm revenue for the region. One measure of the value of water in […]
WestWater Research Announces 2014 Water Rights Price Index Results
WestWater Research is pleased to announce the 2014 Water Right Pricing Index update. Water right prices continued to build on a strong 2013 with another year of double digit gains in 2014. Driven by drought, increased real estate development, and continued economic recovery, water right prices soared to new highs. This edition of the Water […]
Environmental Water Market Spending Tops $560 Million
Environmental water market activity has shown significant growth over the last ten years. Total expenditures on water acquired to protect streamflows across the western US have exceeded more than $560 million. These transactions have been critical for restoring stream flows for endangered fish species as well as improving water quality. Over the last decade, federal […]
Q3 2014: Central Arizona’s Market for Long-Term Storage Credits
WestWater Research is pleased to announce the release of its latest Water Market Insider, which covers the emerging market for Long Term Storage Credits (LTSCs) in Central Arizona. The document reports proprietary data on transactions of LTSCs, which are widely relied upon for banking and firming of surface water supplies in one of the driest […]
Drought Intensity Highlights Importance of Spot Market Water Transfers in California
California’s spot market for single-year surface water transfers on the State Water Project (SWP) and Central Valley Project (CVP) has become a valuable water management tool. The spot market will become even more critical as the state’s current drought continues. In 2013, more than $26.8 million and 197,000 acre-feet (AF) of water were traded. This […]