Buying and selling water is a reality in Alberta — sometimes for big money
CBC
Just south of the town of Taber, Alta., known for its potatoes, corn, and rich soil, the crew at North Paddock Farms finish their lunch, slide on their gloves, and get to work.
Russet Burbank seed potatoes drop onto a sizing belt, where they're sorted and cut. Nearby, massive storage bins are full to the brim of potatoes, due for the nearby McCain Foods and Lamb Weston plants.
The work is underway on April 24 despite the stress that looms over the entire operation this year. This farm, which grows potatoes, canola, Timothy hay, wheat, flax, fava beans and garlic using irrigation, is part of the St. Mary River Irrigation District (SMRID), the biggest of its kind in Canada.
In April, the district said farmers would get eight inches of water — half the allocation they get in a good year — with a dry winter affecting snowpack and reservoir storage.
That's not enough for Alison Davie, one of the owners of the farm operation. She says they need at least 18 inches to grow their potato crop.
For that reason, North Paddock Farms is looking to buy more water.
"If we need more water in this area, we look to see if there's any available to purchase.… You've got neighbours, sometimes they're not going to use their allocation," Davie said.
"All of that extra water comes at an extra cost that's over and above our growing cost."
The year ahead could bring many such transactions in a little-known market Albertans may not be familiar with: the water market.
For farmers like Davie, it will involve the temporary purchase of water allocations. For larger parties, it's something significantly more consequential.
The St. Mary River Irrigation District, where the Davies' farm is situated, holds the water licences used by farmers in this region.
During times of water scarcity, transfers of water allocation are permitted through transactions between farmers. The transfers are arm's-length, and the SMRID doesn't get involved with the actual terms.
"Farmers will pay compensation to each other, if they deem it is worth it to them to have extra water," said David Westwood, general manager of the St. Mary River Irrigation District.
It's a calculation that Davie and her husband, Michael, have had to make this year. And it comes with some risk, not knowing what the weather will bring.
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