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LINCOLN — Is the Niobrara River more valuable as a water supply for irrigators, as a source for electrical generation or for the tourism dollars generated by its scenic beauty and recreational appeal?
That is the question economist Steven Shultz has been asked by the Nebraska Game and Parks Commission as it considers whether to seek protections for the benefit of wildlife and recreation on the Niobrara.
The river's multiple uses seem to be in a state of equilibrium for now, Shultz said. Recreational users complain more about the peak-season crowds than they do about too-low water levels.
“Right now you could not justify retiring irrigation rights on behalf of recreation,” he said. “But what happens in the future if there is drought or expanded irrigation?”
His report on the river's value for irrigation and electricity generation won't be completed before the end of the month. However, Shultz offered some hints about his findings during a meeting Wednesday with state senators and lobbyists interested in water issues.
Although much of the land in the Niobrara basin is pasture, it appears that about 750,000 acres are under irrigation.
Shultz said he is still is working with natural resources districts to confirm the exact figure. Most of the land is irrigated with groundwater wells, not directly from the river. Perhaps 135,000 more acres in the basin are suitable for irrigation, should a current moratorium be lifted.
Shultz, who teaches at the University of Nebraska at Omaha, still is calculating how much irrigation adds to land values in the area, but it appears that farmers are willing to pay an extra $400 per acre for similar land if it's irrigated.
In 2008, Shultz asked canoe and inner tube users when a drop in river levels would stop them from using the river for recreation.
Based on their survey responses, he concluded that as much as $1.7 million per year in recreation-related revenue would be at risk if the river's flows drop significantly because of more irrigation.
Shultz has estimated that recreation on the river boosted the region's economy by $10.5 million in 2008. He predicted that the amount would continue to grow, perhaps by as much as 8.5 percent a year.
He described the river as “a jewel in Nebraska's crown.”
“I'm pretty bullish about it,” he said. “I think the place has a lot of potential.”
Kirk Nelson, assistant Game and Parks director, said the commission is continuing to gather information. It will be at least two years, he said, before a decision is made whether to seek Niobrara flow protections.
Contact the writer:
402-473-9581, leslie.reed@owh.com
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