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HomeMy WebLinkAbout20120300.tiff WELD COUNTY COMMISSIONERS 1111 JAN 24 A R 50 RECEIVED s<< gekl� City of Thornton Annual Farm Management Operations Report Prepared for the Weld County Board of County Commissioners December 6, 2011 2012-0300 torvlmUX•li Clot Cl`. P�X�. cwa (bF P v-y1 pi,1,r\(, 0 w Gaut) Sal l 3D l a i a7- ,a Executive Summary • Thornton acquired farm land and water rights in Weld County in 1985 for its Thornton Northern Project water supply proj1a. • In the last 25 years, Thornton has contributed over( perpll i0 jo,the local Weld County economy through its Farm Management operations, including Voluntary Payments in Lieu of Taxes to Weld County agencies, and the use of local vendors on Thornton's Weld County projects and operations. • Thornton owns 104 farms on approximately 17,700 acres in Weld County.* • Thornton owns 77 farm houses in Weld County that are leased at market rates. • Thornton's Farm House Repair Program has, to date, addressed repair needs on 57 houses at a cost of $558,000. Thornton will continue with this project over the next few years as budget allows. Thornton uses local contractors and vendors for this Program. • In 2011, there were 6,970 acres included in Thornton's Revegetation Program in Weld County*. To date, 4,666 acres have been approved as fully revegetated by the Natural Resources Conservation Service. • Thornton's 2011 Revegetation Program successfully continued the process of converting formerly irrigated land to native grasses by seeding, re-seeding, inter-seeding, mowing, and weed management. • The remaining 10,700 acres in Weld County are still in irrigated agriculture and are leased to local farmers.* Change in acreage from the 2010 report is due to research of ownership records and more accurate GIS mapping. Page 2 0f 12 Weld County2011 FINAL mcx Introduction In 1985 and 1986, Thornton purchased over 20,000 acres of farms and associated water rights in Weld and Larimer Counties. Thornton purchased the assets for a water supply project known as the Thornton Northern Project (TNP). Since Thornton's acquisitions of farms and water, Thornton has operated under a good neighbor policy of working with farmers, residents, businesses and governmental entities to effectively manage its properties and provide benefits to the Larimer and Weld County communities. This annual report, which first began in 2007, provides a summary of Thornton's 2011 operations and activities in Weld County. Since 1986, Thornton has operated a local Farm Management Office in Ault. The function of the Farm Management Office is to oversee the operation, leasing, management, and maintenance of Thornton's properties in Larimer and Weld Counties. Thornton cash-leases many of its farms to local farmers, and several farmers who originally sold farms to Thornton continue to lease farms from the City. Other Thornton farms have been removed from irrigated agriculture, and Thornton has converted, or is in the process of converting, these farms to native vegetation. This conversion of farms from irrigated agriculture to native grasses is required by the TNP Water Court Decree, and must be satisfactorily accomplished before Thornton can deliver water to Thornton customers. The Thornton Farm Management Office pro-actively manages Thornton's properties and tenants, and responds to issues and concerns when they arise. Since 1986, Thornton has spent a total of over $7 million on its Farm Management operations, which includes activities ranging from tree trimming, to plumbing and electrical repairs, to culvert replacements. In 2011 alone, Thornton spent almost $1 million on its Farm Management operations, in most cases with local Weld and Larimer County vendors. In addition, since 1987, Thornton has made voluntary payments in lieu of taxes to Weld County. Up until 2010, these annual payments were in the amount of $137,877. In 2010, Thornton increased its voluntary payments to Weld County to adjust for changes in property values and the local tax schedule. The 2011 voluntary payment was $189,172. For the twenty-five years Thornton has owned property in Weld County, it has contributed over $9.1 million to the local economy through a combination of its Farm Management Operations and voluntary payments in lieu of taxes. Page 3 of 12 Weld Caunty201I FINAL.daax In addition, over the years, Thornton has partnered with local governmental entities and businesses to enhance their operations. For example, Thornton sold land to the Weld County RE-9 School District for expansion of the school campus in Ault and construction of a new station for the Ault/Pierce Fire District. The City has also worked with local agricultural producers to acquire land to improve their operations. Fagerberg Produce expanded their onion processing facility onto land acquired from Thornton, and Longs Peak Dairy recently acquired three Thornton farms to improve their operation. Since 2003, Thornton has leased approximately 43,000 acre feet of water to the Central Colorado Water Conservancy District (Groundwater Management Subdistrict and Well Augmentation Subdistrict) for operation of an augmentation plan for irrigation wells in Weld County. In addition, the City has provided augmentation water to the Town of Pierce (48 acre feet) and the Town of LaSalle (144 acre feet) for operation of their municipal augmentation plans. In 2003, Thornton arranged a lease of water to the Platte River Power Authority from the Water Supply and Storage Company / Pierce Lateral system. This lease not only provided much needed water for PRPA operations, but also helped the Pierce Lateral farmers stay in business during a severe drought. Thornton looks forward to its continued contribution to and cooperation with the Weld County community. Thornton's 2011 Farm Management Operations Reveqetation Protect Thornton currently owns 104 farms on approximately 17,700 acres in Weld County, of which 10,700 acres are still farmed. To date, a total of 6,970 acres in Weld County have been taken out of irrigated agriculture and have been or are in the process of being revegetated to native grasses. As of 2011, 4,666 acres in Weld County have been approved as revegetated by the Natural Resources Conservation Service (NRCS). Thornton implements its revegetation program with contractors and vendors that are selected through a bid process that is advertised locally. Since 2006, all revegetation contractors and vendors have been from the local community in Weld County. Since 2006, Thornton has spent well over $1 million with these local vendors on its revegetation project. Attached is a current map of all of the Thornton properties located in Weld and Larimer Counties. There is currently one grazing lease in place on the City's revegetated farms in Weld County. This tenant works with Thornton to manage his cattle appropriately to maintain the health of the pasture grass on the farm. Thornton does not allow horse grazing on its properties, as in the past this activity led to erosion problems. The pasture grass on the other farms that have been revegetated is cut and baled by Thornton vendors. This procedure maintains the health of the pasture grass, and avoids potential damage from overgrazing. Due to timely amounts of Fege 4 of 12 Weld Collnty2D11 FINALJoor moisture during the spring of 2011, approximately 2,000 tons of grass were harvested from Thornton's revegetated farms. This equates to over 3,000 bales of grass that were harvested and sold to local cattle and sheep producers. Thornton's current plans are to complete revegetation and obtain NRCS approval on a total of approximately 7,000 acres in Weld County by 2015. The remainder of the farms in Weld County will stay in irrigated agriculture until the water is needed for municipal use in Thornton. It is currently estimated that additional conversions from irrigated agriculture to native grasses will not be needed until approximately 2030, when blocks of approximately 1200 acres will be taken out of irrigated production every three or four years. This timeline is a planning estimate and is subject to change to meet Thornton's water supply needs. Reveqetation Report In 2011, Thornton developed a Revegetation Report to document the status and progress of its Revegetation Program. This report includes detailed maps of each of the Thornton owned farms enrolled in the Revegetation Program and outlines tasks that were completed on specific farms and fields in the Revegetation Program. Thornton staff completed GIS mapping, research on legal boundaries, and analysis of aerial photography to assist in the development of this report. As previously mentioned, this research and mapping has resulted in the reconciliation of several acreage inaccuracies. The report will be updated on an annual basis and will include any new land being put in to the Revegetation Program. Thornton's Irrigated Farms Approximately 10,700 acres of Thornton farms remain in agricultural production in Weld County. These farms are leased to local farmers on a cash-lease basis at market rates. Water from ditch company shares or wells is provided with the leases for irrigated land. Thornton generally provides three-year leases to allow farmers to adequately plan their operations. These farms had the following approximate crop distribution in 2011: Crop Percent Shell Corn ( ethanol production, cattle feed) 36% Wheat (used for flour) 18% Alfalfa (used for cattle feed) 16% Silage Corn (used for cattle feed) 14% Sugar Beets (used for sugar) 6% Pinto Beans (human consumption) 5% Onions (human consumption) 5% Thornton's Residential Houses Thornton leases 77 farm houses in Weld County. These houses are leased on an annual basis. Rent is charged at market rates and is re-evaluated each year based on local market conditions. Thornton's houses provide affordable housing options for over 150 residents in Weld County. Thornton's house tenants take pride in their homes, and generally stay in the houses for over 5 years. The City has tenants who have been leasing houses from Thornton since 1986, as well as Page 5 of 12 Weld counly20l1 FINALdoes long-term tenants who have moved from one Thornton farm house to another to meet their space needs . House Repair Program In 2009 , Thornton began a comprehensive Farm House Repair Program . All of the Thornton-owned houses were inspected by a local contracting company, and an inventory of major repairs for each house was generated . In 2009 , high priority repairs were performed on 34 houses . Thornton then prioritized the remaining repairs and developed a schedule and criteria for completion . In 2010 , Thornton performed substantial repairs on ten houses under this program . The types of repairs were wide-ranging , and included significant foundation improvements on two properties, painting of siding , and site drainage improvements . During 2011 , 12 houses received repairs consisting of new roofs, new paint, siding , structural repairs and site grading as well as interior repairs such as painting , sheet rock repair, windows and flooring . To date , approximately $558 , 000 has been spent under this repair program . Thornton plans to continue on the repair schedule by performing work on twelve to fourteen houses per year, depending on budget considerations . Repairs under this program are completed by local vendors . The following pictures are an example of the major repairs performed on Thornton homes in 2011 : � , m �� - AKA . _ - ' '• ; - . :�►. Jett ,k • , ot4 Age e. a. J J� ?„ Farm #107 Northwest corner of Weld County Roads 29 & 84 Prior to outside painting and roof replacement. Page 6 of 12 Weld County2011 FINAL.docx ore 1 . .sir? 11111 • 4 Ilt#t , ..- .I); $ i.1 . CI 1S . �^ - Farm #107 after repairs completed , fall 2011 . -- Y it - t .. a. j . • 1 './� . .. _1 4 -:-64,.j ` l • f 1i. lsta V i _ ,': .�� . . AigeSit :. .v \ J . .. - — — -s', a I -- '# -v-• l C •.-� .•_ ` -. ti _ r �, i -I. iiills4.4• L-: • 7 J - -,�• • i.-'R 111111111111' 11111111 19-44.1 t. - -y, . 11111111 I. Farm #22 located 1/2mile north of Highway 14 on Weld County Road 37 Prior to new roof, painting and grading of ground near house Page 7 of 12 Weld County2011 FINAL docx si, . t__ . art • I: .. ,b - 1 4 , a a. 1f Y- „ i_ . - • . -- 4 Farm #22 after repairs completed , fall 2011 . Fire Department Training The City of Thornton also cooperates with the local fire departments for training opportunities using existing , but non-livable structures , for real life fire and rescue situations . In 2011 , four structures were used in the training of volunteers for the Ault/Pierce Fire Departments as well as the Nunn Fire Department. These training sessions provide invaluable experiences to the local firefighters who , in turn , provide protection to the local citizens . Residential Property Vandalism One structure owned by the City but not occupied by tenants was vandalized and a neighbor to the property reported the damage to Weld County. Upon receipt of the notification . Thornton staff immediately remedied the situation by securing the property with additional plywood to cover the doors and windows . Once the property was secured . Thornton provided notice to Weld County and the property incident was closed . The property will remain vacant because it is in need of substantial repairs before it can be leased . These repairs will be completed in the future as part of the House Repair Program . Thornton staff will continue to monitor this property. Status of Farms 8 , 19 , and 118-25 In 2006 and 2007 , wind storms caused significant erosion and blowing dust on three of Thornton's revegetated farms ( Farms 8 , 19 , and 118-25) . In addition to damage caused to Thornton properties by the dust storms, adjacent land owners experienced damage to their property. Thornton worked with its neighbors who were impacted to mitigate the damage in accordance with their requests . Thornton also took measures on its own property to improve the conditions , including ripping the soil and implementing weed control . As a result. no further erosion on these properties has occurred . Below is an update on the specific properties where these dust issues occurred : Page 8 of 12 Weld Counly2011 FINAL docx Farm 8 Farm #8 is located east of Pierce and on the north side of WCR 90 at WCR 43 (SE 1/4 of Sec 21 T8 R65 and W 1/2 of the SW 1/4 of Sec 22 T8N R65W) . The native grasses are well established on this property, and in 2010 the east side of the farm was approved as revegetated by the NRCS . In 2011 , the west side of the farm was approved , resulting in the entire farm having NRCS approval . Also in 2011 , 317 bales of grass were harvested and sold to local area cattle and sheep feeders . Weeds will continue to be controlled with limited chemical application and mowing . r , � i 1 _ Farm #8 , Fall 2011 . Looking west from the east side of the property at VVCR 90 &43 . (SE 1 /4/4 Sec21 T8 R65 and W1 /2 SW 1 /4/4 Sec22 T8N R65W) Page 9 of 12 Weld County2o11 FINAL docx Farm 19 Farm #19 is located on the northeast corner of Weld County roads 37 & 88 (SW 1/4 Sec 30 T8 R65) . After a 2009 fall inspection of the farm , it was determined that the grass had not fully established . This farm was inter-seeded in the spring of 2010 , sprayed for weed control two times in 2011 . Thornton will continue to monitor its progress . riper , .,mai i • Y . . - Farm #19—Fall of 2011 . Looking north on the north side of WCR 88 and east of WCR 37 . Page 10 of 12 Weld County2011 FINAL.docx Farm 118-25 Farm #118-25 is located on the northwest corner of Weld County roads 37 & 88 (SE 1 Sec 25 T8 R66) . In 2011 , the entire farm was approved as revegetated by the NRCS . Weeds will continue to be controlled with limited chemical application and mowing . i, , 1..1 -444; _ . I ,;.# .4„. ,.; ,... . . .,,,,, , it . , , , ...,. .- te-i. .., '' . , • f. ,.r r.. .' C; di iS . 5IP , 1-_ . CI'R /...v^ , • +� , . .} -• i -Ain �• rrf SIN Y .0YGf-G� l• �i L -'yam`♦., ,-- " 7�f: . i" i ,(;e; ,j .c :S"+f ri_ , :141;r i`w j - �`r3 'Jto(, ,1. - (�, , �.1. I, .}.. r tiir iv'�� �, F . •.. qtr , ) A 1 "? r Farm # 118-25 . Fall 2011 Looking north from Weld County Road 88 1/4 mile west of Weld County Road 37 . Thornton's revegetation program has resulted in the successful establishment of a self-sustaining , dry-land cover on the farms that have been removed from agricultural production . Each farm is unique , and the revegetation process is highly dependent on natural moisture. Thornton evaluates and adjusts its revegetation methods on a yearly and a farm-by-farm basis accordingly. 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