Dear Irrigators,
Thank you to all Irrigators who attended the recent SMRID Irrigator Open Houses in Bow Island, Taber, and Readymade December 3, 4 and 5. We are grateful for the opportunity to speak directly with our irrigators and share updates within the District.
For those unable to attend the Irrigator Open Houses, we have uploaded the Open House Posters below:
Open House PostersIt is important for you to understand the issues facing the District at this time.
Much as they have on our farms, operating costs in the District have increased dramatically. The inflation that has increased the cost of all goods and services has had a significant impact on the costs of running our district. While rates have remained relatively stable for Irrigators, they have not kept up with inflation since 1988.
We believe that it is important to ensure that necessary rehabilitation and maintenance continue to be completed in a timely and cost-effective manner. As our infrastructure ages, the number of required rehabilitation projects across the District has increased and has correlated to an increase in operating expenses.
Although we believe it is safe to budget a $7 per acre contribution from Irrican, due to the variability of Irrican revenue, we cannot rely on it to cover the cost of operating our District. We believe that operating expenses should be covered by water rates. Irrican will continue to support the District by covering the cost of main canal maintenance and assist with infrastructure improvements which would otherwise need to be covered by water rates.
The chart below demonstrates the shortfall in our revenue.
(Fig 1. Shows a $20 million cumulative gap between historical rates and inflation, since 1988).
The Board has determined that to keep up with these costs and achieve our required revenue targets, the water rate will be adjusted to $33/acre, starting in spring 2025, and $38/acre in 2026.
The Board reserves the right to adjust these figures as needed to ensure the District’s viability in the future.
Irrigation water is the most important input on our farms. We have one opportunity to set the rate at the beginning of the season and many opportunities to find cost effective and efficient ways to deliver that water. Our most important goal is to make sure that we all get the water we need, at the right time, to grow a profitable crop.
Please click HERE for additional information.
If you have further questions, please contact the office at 403-328-4401, or your Divisional Board Member.
Sincerely,
George Lohues – Chairman
on behalf of the Board of Directors
St. Mary River Irrigation District