Private group irrigation projects in Manitoba: Central Manitoba Resource Management Ltd. - a case study
Date
2000-06
Authors
Shewfelt, B., author
Smallwood, D., author
U.S. Committee on Irrigation and Drainage, publisher
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Abstract
Irrigation projects in Manitoba have historically been developed by individuals, exploiting water sources close to their land base. In the 1990s private group irrigation companies have emerged. This paper explores the management issues of one such company, Central Manitoba Resource Management Ltd. Central Manitoba Irrigation Association Inc., acting for its 45 producer members, prepared an irrigation development strategy for South Central Manitoba. An operating company, Central Manitoba Resource Management Ltd. (CMRM Ltd.), was established in 1999 to own and operate the off-farm infrastructure resulting from the strategy. CMRM Ltd. developed seven projects in 1999, involving 15 shareholders and supplying 6,000 acres (2 400 ha) of irrigation. CMRM Ltd.'s management structure retains local autonomy. The capital, operating, maintenance and administrative costs arc prorated to each shareholder at the project level. The single operating company allows for streamlining of administrative requirements while shareholder agreements ensure protection of the individual producer's equity. To protect the share value, the operating company applies for and retains the Water Rights and Environment Act licences. Furthermore, group liability insurance is provided to the company's shareholders. The operating company provides Government resource managers with a single contact for licencing, environmental monitoring and channel maintenance issues. Environmental licences issued to the operating company increase accountability in resource utilization, monitoring and protection. The irrigated agricultural sector benefits from the enhanced sustainability and increased potential to attract and support further value-added industry. For the producer, the operating company is not a complicated concept, but does require cooperation. Producers benefit from peer interaction and coordinated environmental initiatives. The operating company structure allows for participation of both irrigating and non-irrigating landowners in joint projects. On the negative side, the cost of licencing, monitoring and maintenance of channels is being downloaded towards the producer. This along with increasingly stringent regulations, makes development times unacceptably long and alternative investments more attractive.
Description
Presented at the 2000 USCID international conference, Challenges facing irrigation and drainage in the new millennium on June 20-24 in Fort Collins, Colorado.