Utah farmers and ranchers have a new opportunity to receive compensation for conserving water. Utah's Demand Management Program (DMP), which launched as a pilot in 2025, is scaling up with access to $100 million in federal funding shared among Utah, Colorado, Wyoming, and New Mexico.

For one farmer in eastern Utah, the DMP made sense because it was voluntary, temporary, and compensated him for the agricultural production he gave up.

“As an agricultural producer, I believe ag needs to be part of the solution when it comes to conserving water in the Colorado River Basin, but conservation programs also need to make sense for the farmers and ranchers who participate,” said Kent Nelson, Ranch Manager for NRV Ranches. “One thing this experience has reinforced for me is that there needs to be flexibility in how agricultural producers conserve water. While full-season fallowing can make sense in some situations, particularly when a field is already due for rotation, it may not make sense to take a newly established, highly productive alfalfa field completely out of production.”

“I believe programs like Demand Management can be an important tool for the Colorado River's future,” Nelson added. “If conservation remains voluntary, temporary, flexible, and fairly compensated, I believe agriculture can play an important role in conserving water while also protecting the farms, ranches, and rural communities that depend on it.”

Options such as split-season conservation, crop rotation, and lower-water-use forage crops could allow producers to conserve meaningful amounts of water while keeping agricultural ground productive.

Producers with a history of beneficial water use in Utah can apply for compensation through voluntary projects, such as resting cropland for a season or improving irrigation systems. Farmers can reinvest the funds in farmland upgrades and infrastructure improvements.

Utah has already proven this model works. In 2023 and 2024, the state led all Upper Basin states by enrolling over 15,000 acre-feet each year in its pilot program. Participating now offers an early opportunity to help protect Utah's water rights on the Colorado River and mitigate the risk of future mandatory cutbacks.

To learn more, please contact Marc Stilson with the Colorado River Authority of Utah at mkstilson@utah.gov.