July 24, 2020
Newsletter for July 24, 2020
This Issue:
  • UNR Economic Team Offers Highlights Of Mid-July Ag Outlook
  • After Extended Special Session, Legislators Wrap Up Necessary Spending Adjustments
  • Farm Bureau Policy Discussions Underway For Shaping Organizational Water Policy
  • AFBF Market Report Presents Update On Just Released Beef Market Findings
  • Reminder Of State Engineer Hearings For August 12 On Proposed Orders
UNR Economic Team Offers Highlights Of Mid-July Ag Outlook
The University of Nevada, Reno (UNR) Economic Team who focus on Nevada agriculture have just released their latest video presentations covering Nevada’s beef, dairy and hay outlooks. The video presentations don’t offer a rosy picture for the next several years, as the after effects of COVID-19 continue to play out in the overall economy. The UNR economist involved in this on-going project include Dr. Tom Harris, Mike Helmar and Malieka Bordiginoni.
After Extended Special Session, Legislators Wrap Up Necessary Spending Adjustments
It took a couple of night attempts to pass a tax increase, targeting the mining industry, but in the end the efforts fell short and the necessary reductions came about through a session ending spending trim . The bill used other funds from various sources, cut additional spending from areas like the Nevada System of Higher Education (an additional $25 million in cutbacks) and found a way to reduce the number of days proposed for government employees to have unpaid days over the next year (down from 12 furlough days to 6) while still keeping the government merit pay increases in the budget.

The two attempts at extracting tax dollars from Nevada’s mining sector fell short by the Constitutional provision that requires a 2/3 majority to pass a tax bill.  The majority party is one vote short of the necessary 14 votes in the Senate to accomplish the majority party’s desired objective.  Under the provisions of the bill, mining net proceeds taxes would need to be paid for the next two years in advance and the deductions for calculating expenses of the mineral process would have been capped at 60 percent of their totals.  An earlier passed tax bill will require advance payments of the net proceeds tax, but maintains the ability for using the expense deductions and provides for truing up the actual amounts that should have been paid if the advance payments are too high or too low.  The first vote of the proposed tax increase came around 2:30 a.m. on Friday, July 17 after not actually holding legislative floor sessions scheduled for daytime lines on Thursday.  The next nighttime attempt came after not meeting for the scheduled daylight floor sessions on Saturday, July 18 th .  For those who might be frustrated by all day delays in starting scheduled floor session when they are set and then attempting to hike taxes after the sun goes down, you only need to remember that there is a political party in charge of the scheduling and getting the process started.  There must be some strategy involved in working to carry out the operations in this manner…?
Farm Bureau Policy Discussions Underway For Shaping Organizational Water Policy
Tuesday, July 21 a working group of Farm Bureau volunteers, who are interested in water-related issues, met in Winnemucca for discussions of what Nevada Farm Bureau policy should cover as preparations are being made for the 2021 Nevada Legislative Session.  In their discussions the participating members identified the importance of local working groups from around the state holding specific water-related policy development meetings through their county Farm Bureaus, focusing on the water issues of their area.  Additionally, the discussions for addressing on-going water policy issues encouraged proactive direction as an objective, versus simply relying on a defensive stance in pushing back against legislative initiatives oriented to changing Nevada water law.

Your input and thoughts are welcome and strongly encouraged!  We hope that you’ll respond through participation in this water policy survey .
AFBF Market Report Presents Update On Just Released Beef Market Findings
Over the past several months, American Farm Bureau Federation (AFBF) Economist Michael Nepveux has been following and reporting on the news and developments which are connected to the concerns over how the U.S. beef market system has been functioning through a couple of notable events which resulted in major market disruptions.  With the just released United States Department of Agriculture (USDA) report on the investigation the agency has been working on, digging into whether there have been inappropriate activities within the market system, he filed this update and shared these background details.
Reminder Of State Engineer Hearings For August 12 On Proposed Orders
In last week’s newsletter we highlighted the plans by the State Engineer to hold three hearings for August 12 th  on proposed orders that he has issued involving the designation of a number of water basins across the state.

All of the hearings will be conducted in a virtual sense with those who wish to participate needing to call in or tune in with their computer/tablet/or other device connected to the video teleconference system.

The hearing for the designations of  Pueblo Valley (Basin 001), Continental Lake Valley (Basin 002) and Gridley Lake Valley (Basin 003) is scheduled for 9 a.m. on Wednesday, August 12.  All three of these basins are located in the Northwestern corner of Humboldt County.  Based on the numbers we’ve been able to research the primary issue for the designation is based on the level of committed water rights and the determined amount of the perennial yield.  The highlighted basin names below will take you to the proposed orders for each respective basin…

Pueblo Valley – 001                5,600.32 Committed               2,000 Perennial Yield

Continental Lake Valley – 002   10,66.64 Committed               11,000 Perennial Yield

Gridley Lake Valley – 003 .   6,191.85 Committed                 3,000 Perennial Yield

The hearing for the designations of Newark Valley (Basin 154) and Long Valley (Basin 175 is scheduled for 10:30 a.m. on Wednesday, August 12.  These two basins are mostly located in the area of Eureka, Elko and White Pine Counties. Again, it appears that the underlying point for the designations are related to committed water rights and the determined amount of perennial yield.  The highlighted basin names below will take you to the proposed orders for each respective basin…

Newark Valley – 154   27,608.62 Committed             18,000 Perennial Yield

Long Valley – 174     4,749.33 Committed               6,000 Perennial Yield

The hearing for the designations of several basins in Lincoln County (Basins 198 - 204) is scheduled for 1:30 p.m. on Wednesday, August 12.  These basins have an accumulated perennial yield of 25,000 acre feet but are dealt with on an individual basis.  There was some confusion on how the designated basins were being dealt with, but we have been informed that the proposed designation orders are being treated as induvial basins.  The highlighted basin names below will take you to the proposed order for each respective basin…  (again remember that the overall total of determined perennial yield for the complex of these basins is considered to be 25,000 acre feet)   This is the link   for the proposed order for the combined Lincoln County basins.

Dry Valley – 198                                   6,273.84 Total Committed                

Rose Valley – 199                                  1,411.50 Total Committed

Eagle Valley – 200                                    453.12 Total Committed

Spring Valley – 201                              1,125.58 Total Committed

Patterson Valley – 202                          5,546.78 Total Committed

Panaca Valley – 203                            23,880.36 Total Committed

Clover Valley – 204                               2,792.39 Total Committed

Lower Meadow Valley Wash – 205    22,428.08 Total Committed

The total of these individual basins total 63,911.65 of Total Committed acre ft. of water rights.
Have a great weekend!