July 1, 2022
Newsletter for July 1, 2022
This Issue:
  • AFBF Survey Shares Latest Costs For July 4th Cookout
  • More On The Nevada Supreme Court Ruling On The Diamond Valley Groundwater Management Plan
  • Court Decisions And The 2023 Nevada Legislature
  • Your Response For Drought Survey Would Be Very Helpful
  • Nevada Farm Bureau Gearing Up For New Emphasis On Agriculture In The Classroom
AFBF Survey Shares Latest Costs For July 4th Cookout
The impacts of our economy's present inflation continues to be demonstrated by tracking historic comparisons.  American Farm Bureau Federation (AFBF) Chief Economist Roger Cryan says the overall cost for this year’s July 4th cookout is up 17 percent (roughly $10) from last year.  The AFBF news release offers the specifics of where differences totaled to tally the nearly $70 shopping bill for 10 people.

In his offering background on the reasons of the price increases, Cryan places the inflationary monetary policy as a major factor.  Cryan is also quick to point out that in spite of the raising food prices, farmers and ranchers are not the benefactors of the price hikes, noting that rising input costs are cutting into the returns that producers are getting for their products.  “In a lot of cases farmers are not even covering their increased costs with these higher prices,” Cryan said, adding, “Livestock producers in particular are paying higher prices for feed while their own prices are not that much above last year, if they are at all.”

This AFBF Economic piece from earlier this year drew attention to the on-going problems that agricultural producers are facing.  This very recent economic analysis draws specific attention to the impacts of increased fuel prices.

“For diesel and gasoline, crude oil supply and demand fundamentals are pushing prices up at the pump.” AFBF Economist Shelby Myers wrote in her economic piece “Rising Fuel Costs Continue To Impact Farmers.” “If the U.S. cannot increase production and is not importing the supplemental quantities needed to meet the increased demand, prices could continue to rise. Furthermore, limited domestic refining capacity for those crude oil supplies could further strain supply availability as demand rises, which could also contribute to increased costs. It will be important to keep an eye on domestic production to see if the U.S. can return to its peak production level of nearly 400 million barrels a month.”

Turning things around will require something much more dramatic than what is being proposed as a temporary federal fuel tax holiday, targeted at providing a small and limited bandage for the upcoming election.

The two things that Myers says are necessary are, “domestic crude oil production companies must have regulatory flexibility and second, refiners need a business environment that fosters certainty and increases domestic capacity to deliver.”
More On The Nevada Supreme Court Ruling On The Diamond Valley Groundwater Management Plan
Last week we reported on the split decision of the Nevada Supreme Court and the majority ruling in favor of approving the State Engineer’s Order 1302 for implementing the Groundwater Management Plan for Diamond Valley.  The four-member majority, with Supreme Court Justice James Hardesty writing the opinion, indicated that they believe that because of the adopted legislation (NRS 534.110 (7)) the State Engineer is able to designate over-appropriated basin as a Critical Management Area and then under NRS 534.037 water right holders are authorized to consider and possibly approve a Groundwater Management Plan to replace the Critical Management Plan by bringing the basin back into balance of being over-appropriated.  In doing this process, prior appropriated water rights are dealt with by requiring all water pumpers to reduce pumping and not only junior water right under the adjusted management approach.

This week we wanted to dig deeper into the issue and focus on one of the dissenting opinions, written by Chief Justice Ron Parraguirre and concurred with by Justice Abbi Silver.  At the core of his opinion, Justice Parraguiree takes exception to the majority’s opinion that 155 years of Nevada water law, based on the Doctrine of Prior Appropriation, can be reversed in such a situation.

“I recognize that the groundwater shortage that befall Diamond Valley and Nevada are of great concern to the public,” Justice Parraguiree wrote in his conclusion.  “However, I do not believe that these concerns allow this court to interpret NRS 534.037 and NRS 534.110 (7) contrary to Nevada’s historic water law.  The constitution controls over any legislative act, and therefore, this court should adopt an interpretation of NRS 534.037 and NRS 534.110 (7) that avoids constitutional violence.”

From his perspective, in covering the facts of the case, Justice Parraguiree notes that under the Diamond Valley Groundwater Management Plan, a senior appropriator (who was entitled to 100 acre-feet of water annually) would be allowed to use only 67 acre-feet of his water per year for the first five years of the plan.  On the other hand, the junior water right owner (who would not be entitled to use any water under the doctrine of prior appropriation) is provided with 54 acre-feet of water for the first five years of the plan.  

Over the course of the 35 years of the Groundwater Management Plan, by year 35, the same senior water right owner will be down to having only 30 acre-feet of his original 100 acre-feet of water.  The junior water right owner would get 24 acre-feet of water.
Court Decisions And The 2023 Nevada Legislature
Over the past several months a couple of major court decisions, the first in mid-April when Judge Bita Yeager of Nevada’s 8th District Court, determined that the State Engineer did not have the authority to base a decision on conjunctive management of water resources in the Lower White River Flow within a superbasin that he had created and now the Nevada Supreme Court’s Diamond Valley Groundwater Management Plan, we’re going to be dealing with another Nevada Legislative Session of attention on water matters.  

The question for Nevada Farm Bureau members is whether the organization policy we have in place offers the direction that they want their organization to pursue?  Our policy establishes an unwavering perspective on maintaining Nevada’s doctrine of prior appropriation…first in time – first in right.  

Our current policy on “conjunctive management” states…

“We are very concerned over the lack of legislative direction and absence of specific parameters in regard to how “Conjunctive Management” is going to be carried out. We urge a full public discussion of what conjunctive management of water resources means and how combining separate sections of state law will be implemented. Long and established separations for surface and groundwater rights cannot be quickly combined without a complete vetting of how issues and impacts will be worked through. Top down edicts by the State Engineer’s office, without local, public engagement of those being affected is not acceptable.

Statutory parameters need to be established to guide regulatory actions in how the State Engineer will implement and operate conjunctive management activities.

Regulatory activity related to carrying out conjunctive management needs to be based on established scientific documentation that the water relating to the conjunctive management of specific groundwater and surface water are connected, as well as an established understand to the degree one water right is relating to others.

The interaction of water from various sources involves many different elements include the timeframes and the degree to which connections take place. State policy on the use of conjunctive management needs to be based on site specific circumstances, which recognizes the variety of elements that exist at a specific site. Not all areas have the same connection and interaction throughout a system
and this warrants consideration in implementing active management that has consequences to different water rights”.

“In responding to State Engineer actions where conjunctive management actions could have an impact on different water right owners, senior water right owners need to have their rights duly recognized as they wish to have the water associated with their rights dealt with. They should be able to receive water which meets their water rights instead of being required to accept financial or other compensation through mitigation measures that they do not voluntarily agree to.”

We strongly urge discussion and thoughtful consideration by Farm Bureau members in this year’s policy development process, factoring in where we appear to be and in light of extremely likely water law proposals to be taken up in 2023.
Your Response For Drought Survey Would Be Very Helpful
Over the past couple of weeks we’ve been highlighting the American Farm Bureau Federation (AFBF) 2022 drought survey as part of their on-going monitoring approach.  The photo shows that Nevada has 4 persons who have provided their input on this survey project.  We’re hoping that a few more will take the time to click on the link above, entitled “drought survey”.  This project will not only be developing state-level information but will also be accumulated into a regional over-view of drought conditions and impacts.  Your input would be greatly appreciated!
Nevada Farm Bureau Gearing Up For New Emphasis On Agriculture In The Classroom
Earlier this year the Nevada Farm Bureau Board of Directors included an emphasis on Agriculture in the Classroom as part of the priorities that Nevada Farm Bureau will be pursuing.  As part of this priority emphasis, Nevada Farm Bureau has hired Woody Worthington of Douglas County as the Director of Agriculture Education and Advocacy for the Nevada Farm Bureau Federation. His role will include expanding the current Ag Education program and collaborating with local and state agencies to promote, preserve and protect Nevada’s agriculture. 

“My first goal is to meet with local school representatives to grow the Ag in the Classroom efforts for Northern Nevada counties.” Worthington said.  “I am excited to see the program expand into schools we may not have been to for some time. Concurrently, I am working on a plan to further our outreach into communities through various Farm Bureau events. I am excited to be able to support our county Farm Bureaus in their effort and help where I can.”

The attention Farm Bureau is giving to building a stronger understanding of agriculture, through various educational platforms also includes this new offering from the American Farm Bureau Federation Foundation.
Have a Happy and Safe 4th of July!