By Rajendra Khanal, Department of Civil and Environmental Engineering, University of Utah

Farmers growing crops such as wheat and corn might be more interested in leasing some – rather than all – of their water to support instream flows in times of water scarcity, which are likely to occur more frequently as the climate changes. Photo: WSDA under CC BY-NC 2.0 (corn) and Rajendra Khanal (wheat).
If you are a Washington agricultural producer who has a water right and wants to lease your water to another user, you are currently allowed to either lease your entire water right and fallow your land (that is, not use any of the water yourself) or not lease and use your full water right for crop production. The option of leasing a part of your water right (partial leasing) does not exist.
Introducing an option for partial leasing could make more farmers willing to participate in water markets, and thus expand markets’ potential as a tool for meeting diverse water needs, especially as climate change increases the likelihood that water supplies won’t be sufficient to meet all demands, all the time. For example, farmers might lease some of their water to support instream flows in times of water scarcity, which are likely to occur more frequently as the climate changes. Although there are a number of challenges that would need to be overcome to make partial leasing a reality (I discuss those later), we started by asking the question of whether the potential benefits of partial leasing are big enough to make it worth bothering to invest the time and money it would take to overcome those challenges. Continue reading