Water is the lifeblood of Texas ranching, sustaining livestock, agriculture, and development. However, Texas faces a significant challenge: water shortages exacerbated by rapid population growth. Understanding these challenges is essential for anyone involved in ranch real estate, residential development, manufacturing, or data center operations. In Region C, which includes the Dallas-Fort Worth metroplex, the situation demands action. Fortunately, the TWDB is already looking at and planning for the most economical ways to facilitate the growth of the North Texas area. Here’s what you need to know:
Understanding Region C
For water planning purposes, TWDB has 16 regions across the state (Region A - Region P). Region C encompasses the following counties: Cooke, Grayson, Fannin, Jack, Wise, Denton, Collin, Parker, Tarrant, Dallas, Rockwall, Kaufman, Ellis, Navarro, Freestone, and western Henderson. This area is a hub of economic activity and rapid population growth, which places substantial demands on its water resources.
Current and Future Water Demand
In 2020, Region C faced a shortfall of 65,952 acre-feet of water. This deficit is projected to grow to a 306,638 acre-feet (an acre-foot is ~325,000 gallons, or enough water to cover one acre of land with a foot of water) by 2030, assuming no change in supply. Fortunately, there are strategies in place to address the issue, with 360,766 acre-feet of "strategy supplies" identified to help mitigate the gap. Most of the 2020 strategies are considered “low hanging fruit” and seek to conserve water as a way to reduce demand.
Breakdown of Water Demand
Municipal demand is the primary driver of water usage in Region C, far exceeding all other sources combined by a factor of more than ten. As the population grows, urban areas will continue to put immense pressure on water resources.
For ranch owners, it’s crucial to note that while demand for livestock water is expected to remain stable, the overall competition for water resources will intensify. Mining demand is projected to decrease, but this provides little relief given the overwhelming municipal needs.
Manufacturing and Water Demand
Manufacturing projects are projected to maintain current water usage levels over the next 50 years, hovering around 50,000 acre-feet. However, given Texas' business-friendly environment and the anticipated growth in domestic manufacturing, it is likely that actual demand will surpass these projections, increasing the strain on water supplies.
Water Management Strategies
To combat these shortages, nearly $30 billion in recommended water projects are on the table. These projects are focused primarily on demand reduction, which accounts for 78% of current initiatives. By 2030, the strategies will diversify: demand reduction (37%), surface water development (34%), and water reuse (27%) will each play crucial roles. By 2070, the focus will shift more towards surface water (41%) and reuse (30%) to increase supply.
Implications for Ranch Owners
For ranch owners and prospective buyers, understanding these water dynamics is essential. Water scarcity can impact everything from livestock health to crop yields and overall land value. As competition for water increases, securing reliable water sources will be a critical consideration in any land transaction.
One of the most frequently asked questions from developers is, "How much water is available?" Water availability directly influences property values. Developers know that water is highly regulated, and the water company must demonstrate the capacity to provide the required amount of water to a home under various conditions. A reliable water supply is crucial for any development project, and its scarcity can significantly reduce property values.
Conclusion
As real estate agents specializing in ranch properties, we are committed to helping you navigate these challenges. By staying informed about water management strategies and understanding the broader regional water dynamics, we can better assist you in making informed decisions about your property investments.
For more detailed information and personalized advice, please contact us. Your success in ranching and land management is our priority, and we are here to support you every step of the way.
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For inquiries or to discuss your real estate needs, visit Story Group Land & Ranches (https://storygroupland.com) or call us at 817-201-8352. Stay tuned for more insights and updates on how to manage and thrive in the evolving landscape of Texas ranching.
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