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Board approves loans for three irrigation modernization projects totaling about $4.3 million in state support

Utah Board of Water Resources · October 10, 2025
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Summary

The Utah Board of Water Resources authorized cost-share loans for three irrigation modernization projects — Veil Irrigation, Smithfield Irrigation and Cache High Line — approving recommended low-interest, long-term purchase agreements conditioned in some cases on water-rights reporting. Totals: Board shares of up to $990,000, $952,000 and $255,000 respectively.

The Utah Board of Water Resources on Oct. 9 approved funding support for three irrigation modernization projects in Washington and Cache counties, authorizing long-term, 0% interest purchase agreements to help pipe open canals, install screens and SCADA systems, and reduce seepage and debris problems.

Staff presented RE498 for the Veil Irrigation Company (near Vail, Washington County), describing an open concrete-lined canal that serves roughly 40 shareholders and irrigates about 476 agricultural acres. Russell Hadley, presenting for staff, said the system operates at an estimated 50% efficiency with more than 380 acre-feet of annual loss. Staff recommended enclosing the canal, installing roughly two miles of HDPE pipeline, meters and a pump station at an estimated cost of $2,150,000, with the Board providing up to $990,000 (46% cost share) at 0% interest over 25 years. Stewart Bowler, president of Veil Irrigation Company, told the board shareholders have been informed and “are prepared for the increased cost” after multiple meetings.

The board moved and approved the staff recommendation by voice vote.

The board also approved RE500 for Smithfield Irrigation Company (Cache County), a project to replace the debris-prone ‘black pipe’ alignment and aging diversion structures, add sediment basins and install SCADA to reduce clogging and improve water-quality controls. Staff reported Smithfield serves roughly 1,100 shareholders (about 2,200 acres of agricultural irrigation and 600 acres of secondary irrigation). The total project cost is estimated at $3,100,000; staff recommended Board authorization of 30.7% of project cost, up to $952,000, at 0% interest over 25 years with annual payments of approximately $38,100. Applicants confirmed construction is planned to coordinate with Cache High Line’s work and that they will comply with Division of Water Rights reporting requirements.

Finally, the board authorized RE501 for the Cache High Line Water Association, which would upgrade an existing 36-inch metal conveyance (the so-called black pipe), add a traveling screen and construct sediment-control structures and SCADA. Staff recommended Board authorization of up to $255,000 (32.1% cost share) at 0% interest over 25 years, with funding conditioned on compliance with Division of Water Rights reporting.

All three project recommendations were moved, seconded and approved by voice vote during the meeting. The board recorded no roll-call opposition on these items.

The approvals aim to reduce seepage and debris-related inefficiencies, improve on-farm nozzle sizing and water accounting through meters and SCADA, and remove hazards posed by open canals passing through town. Applicants noted portions of on-farm sprinkler conversions would be supported by Natural Resources Conservation Service funds and water-optimization grants from the Utah Department of Agriculture and Food.