Board approves leasing rules as staff outlines Cache Valley pilot, $464/acre price and next steps

The board overseeing the Great Salt Lake leasing program approved rules as amended after staff reviewed results from a pilot agricultural-water leasing program in Cache Valley and sketched policy choices for expanding and administering the program.

Micah Saifston, a presenter on the leasing pilot, said the program contracted with eight irrigation companies in Cache Valley and has about 2,450 acres under lease within an 18,000-acre eligible service area. "We offered a price of $464 an acre," Saifston said, noting the program used a 'value of applied water' calculator based on hay prices, input costs and a conservative yield estimate.

The presentation stressed data limits: Saifston warned that acre-foot estimates and depletion calculations should be treated with caution this year because no dedicated change applications have been approved and 2026 is an unusually dry year. He told the board that staff will work with the water-rights network to improve depletion estimates next season.

Why it matters: The program pays landowners to forgo irrigation so more water can reach the Great Salt Lake. The board’s approval of the rules is an administrative step required before the program can scale; members flagged key policy choices that will affect who is eligible and how scarce funds are prioritized.

Discussion and incentives: Staff described two common lease structures: company-wide shoulder-season shutdowns (lower per-acre cost but large acreage) and individual shareholder leases. To avoid filing hundreds of shareholder change applications, staff proposed paying companies a one-time bonus of $10,000–$20,000 to file a dedicated water-right application and keep it in place for 10 years. "If the company will file a dedicated and give us access to shareholders, we'll pay them a bonus," Saifston said.

Leased-ground and operator eligibility drew extended debate. Staff proposed three options: continue excluding leased ground, require both landowner and operator be parties to the contract, or contract with the operator while requiring a landowner acknowledgment (an "NRCS-style" consent). Board members said protecting production agriculture and avoiding rent inflation should guide the policy. Staff signaled a preference to treat the contract party as the operator, with a landowner consent form when ownership differs.

Enforcement and funds: Members asked whether enforcement collections would return to a program account or flow to the general fund; staff said they would research whether enforcement fees can be retained in a preservation account rather than the general fund. The board also discussed creating a hearing committee to handle enforcement appeals rather than requiring all voting members to attend every hearing.

Formal action: A committee member moved to approve the rules as amended and was seconded; the chair called for a voice vote and the motion passed by voice (the transcript records "All in favor. Aye." but does not give a roll-call tally). The rules approval will allow staff to finalize an application package for the next enrollment period.

Pricing and next steps: Staff walked through the pricing methodology used for the pilot. The "value of applied water" baseline was estimated at about $371 per acre for 2026; applying a 25% premium in parts of Cache Valley produced the $464/acre pilot price. Owen Richmond, who led field verifications, presented supplemental hay-price analyses combining Utah and Idaho data and noted gaps in the Utah direct-pay time series. Staff recommended also reviewing the Hoyt report and other market sources. Joel (self-identified in the record) urged caution and consistency in choosing the reference price to avoid the appearance of conflict or ad-hoc premium adjustments.

Because statute requires the board to approve applications by Dec. 1, staff recommended opening applications in September and finalizing price and application language at a follow-up meeting. The board set a tentative next meeting for Sept. 10, 1–3 p.m., to set the 2027 price, finalize the application and approve a policy document.

Staffing and verification: Saifston proposed using program funds to pay for program staffing — including paying a program manager from the account and hiring at least one full-time field staffer to continue ground-truthing and inspections. "Owen has been doing monthly inspections of all these fields," Saifston said. Board members supported the staffing proposal and asked staff to return budget details.

What happens next: Staff will prepare a policy document that spells out enforcement, leased-ground eligibility, operator definition and verification protocols, and will present a recommended 2027 price at the Sept. 10 meeting. The board’s approval of rules as amended allows staff to proceed with those next steps and to expand outreach and verification work.

Sources: Reporting here is based solely on the full meeting transcript and on statements made at the meeting by participants identified in the record.