How does a farm pay for water?
How much a farmer or rancher pays depends on several factors. For example, geographic location, water sourcing and institutional arrangements can all effect the price of water on farms.
Many regions have water rights, which requires farmers to be approved for water use as long as they can use the water in a beneficial and non-wasteful ways. Local water rights can change the price of water and amount farmers can use. Due to these factors, and the amount of water a farmer’s crop may need, the farmer will put aside an appropriate amount of money for water, which will generate the best crop yield. Paying for water consumption can be one of the most expensive fees when it comes to farming.