Here in the San Luis Valley, water is deeply connected to our way of life. The Rio Grande, its tributaries and connected groundwater support local heritage, agriculture, recreation and the natural environment. Like all of the region’s streams and rivers, the Rio Grande is critical to the livelihood and economies of the communities of the SLV and is a growing recreational and economic asset to communities outside of the Valley as well.
To help illustrate the critical value water plays across all sectors in the Valley, American Rivers and One Water Econ released a new study this week, The Economic Value of Water Resources in Colorado’s San Luis Valley, which presents the economic benefits of key sectors and services that depend on water in the Valley. The analysis looks at irrigated agriculture, municipal and industrial uses, tourism and recreation, and environmental values like wildlife habitat.
While we all know and understand the intrinsic value of water in the Valley, economic data will further elevate not only the social importance of water, but also the economic contributions the Rio Grande and Conejos River, other streams, and connected groundwater provide to the San Luis Valley. Our community can use this economic data to tell the story of ongoing collaborative water management projects, help fight future threats, including groundwater export schemes, and make the case for multi-benefit river restoration efforts that are a win-win-win for agriculture, communities, and the environment.
Irrigated agriculture, a key economic driver in the SLV, is reliant on the surface water flowing through the Valley along with the vast number of groundwater wells and is deeply connected to the history of the Valley. The study found that crops supported by surface and groundwater make up 39 percent of Colorado’s total agricultural output, despite the population of the Valley being less than 1 percent of Colorado’s population. Additionally, irrigated agriculture was found to contribute more than $480 million annually in economic output. For every $1 that is spent on local inputs for agriculture production, an additional $1.56 is generated in the regional economy. Potatoes and vegetables are the largest economic generators in the agricultural space, with an annual economic output of $184 million. Not only does irrigated agriculture provide critical economic benefits, but the irrigated fields and wet meadows also support critical migratory bird habitat.
Recreation, a growing economic sector for the Valley, is heavily reliant on water flowing from the surrounding mountains into the Valley and provides significant economic value. The Great Sand Dunes National Park and Preserve attracts national and international travelers, as do the world-class birding and wildlife viewing opportunities at the nine state and national wildlife refuges that are made up of wetland, riparian, and open water ecosystems, and support numerous species of resident and migratory birds, including sandhill cranes. Additionally, the Rio Grande and Conejos River draw many visitors for both whitewater boating and world class fishing. The recent economic analysis found water-related recreation provides $213.7 million in benefits annually in the San Luis Valley, and for every $1 spent on recreation, $1.91 is generated through ripple effects within the local economy. The Valley’s riverside lands, wetlands, and wet meadows are a critical part of the natural infrastructure supporting recreation and many species of wildlife. The analysis found that water-related habitat in the Valley is valued at more than $49 million annually and the annual Crane Festival generates $4 million in direct revenue from visitor spending.
Many other industries beyond recreation and agriculture also rely on water – local breweries, distilleries, bakeries, greenhouses, hospitals, and hotels among others – all rely on water. These “water-dependent” industries (WDIs) generally rely on the services of water utilities to support and grow their businesses. Water-dependent industries in the Valley support nearly $1.3 billion annually in total economic output. Water is undeniably a critical resource for the Valley, providing not only economic benefits but other ecosystem services, and intrinsic and cultural values. The economic data from this new analysis provides San Luis Valley communities with information to help protect the Valley from export schemes, further support water projects that conserve the Valley’s precious resources, and illustrate to those outside the Valley why water is so critical to the livelihoods of every person in the SLV.
Partners involved in the creation of the study from American Rivers, One Water Econ, and the San Luis Valley Water Conservancy District will present information about the study at the Rio Grande State of the Basin Symposium at Adams State University on March 29. The event is open to the public and all are encouraged to attend. The analysis is also available on American River’s website at www.americanrivers.org/SLVEconomicReport.
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Heather Dutton is manager of the San Luis Valley Water Conservancy District. Emily Wolf is Rio Grande coordinator for American Rivers.