By Cecelia Rowe, DWFI Multimedia and Communications Intern
For growers in Texas’s Lower Rio Grande Valley, water is essential to their livelihoods, sustaining the diverse array of crops grown in the region. This summer, Stanford University sophomore and Lincoln, Neb., native Elliana (Ellie) Hiser returned to DWFI for her third summer. This year, she was supporting work to develop new water options markets for this group of growers.
Through this work, Ellie is helping the DWFI team pave a more resilient agricultural future, ensuring that local growers can manage their risk by increasing their available water and decreasing their crop insurance costs, while irrigation districts can generate revenue for needed infrastructure improvements.
Water and crops in the Rio Grande region
In the Lower Rio Grande Valley, there are many different commodity crops including sorghum, corn and cotton, as well as specialty crops like vegetables and citrus. The area is served by more than 20 irrigation districts, which distribute surface water via canals to the growers and, in some cases, to municipalities. Water policy in the Rio Grande Valley varies by irrigation district.
Without irrigation, growers face higher risks, higher insurance premiums and lower payouts for crop insurance. Agricultural water markets are one mechanism that allows water to move to high-value uses and so helps to reduce risks to participating growers. A water options market provides buyers with the ability to purchase water in the future at a set rate by paying a small price upfront. This purchase allows a guarantee of sufficient water in the future if drought or other water shortfalls occur. Purchasing water options can allow growers to access irrigated crop insurance where they might otherwise be ineligible.
DWFI is working with USDA’s Office of the Chief Economist and with local stakeholders in the Lower Rio Grande Valley to establish the first water options markets for growers and irrigation districts. If successful, these will help to reallocate water in a sustainable and economically beneficial manner for all parties involved.
Project importance and impact
Ellie understands the importance of this project. She shares that by making connections with growers, irrigation district managers and other stakeholders in the region and providing water options and markets, DWFI can increase growers’ water access and production.
Watching the team connect directly with stakeholders in the Rio Grande region and working alongside the DWFI team has been an incredible opportunity for Ellie to see the potential real-world impacts of their work firsthand.
Ellie’s research experience and advice
Ellie found the project fascinating, gaining deep insight into how much irrigation directly impacts the livelihoods of those in the region. Her role this summer involved conducting research to support the team as they work with local stakeholders to develop water options markets. She was particularly surprised by the wide diversity of crops in the region and the value those crops hold.
Her advice to future interns at DWFI is simple: invest time in getting to know both your direct team and the colleagues working around you.