News

Report: Potential economic impact of irrigation tunnel collapse is $89M

The collapse of an irrigation tunnel in southeastern Wyoming could cost Nebraska and Wyoming roughly 89 million dollars in economic losses if affected crops are a total loss, according to a report by university specialists in the two states.

The tunnel collapse and subsequent canal failure in mid-July disrupted water deliveries to about 107,000 acres of cropland in Goshen County, Wyoming and Scotts Bluff County, Nebraska. Surface-water irrigation is critical to crop production in the area, which receives less than 16 inches of average annual precipitation.

As of mid-August, the canal bank had been repaired, but contractors were still working on repairs inside the tunnel.

Meanwhile, state Farm Bureau organizations in Nebraska and Wyoming are urging the USDA to ensure crop insurance will cover crop losses experienced by those farmers. According to a news release issued by the two groups, the USDA’s Risk Management Agency has not yet determined whether federal crop insurance would cover crop losses caused by the tunnel collapse.

Farmers in the affected area mainly produce irrigated alfalfa hay, corn, sugar beet, and dry edible beans.