SANTA PAULA, CA - Limoneira has recently unveiled a new program to increase its water savings, aligning with the Yuma Mesa Irrigation and Drainage District (YMIDD) for a two-year fallowing and forbearance program at the supplier’s Associated Citrus Packers ranch in Yuma, Arizona. The program will target approximately 400 acres of farmable land throughout the duration of the agreement, resulting in excess of 4,200 acre-feet—more than 1.3 billion gallons—annually of saved water that may be retained in Lake Mead as Colorado River System Conservation Water.
“We are excited to finalize and enter into this fallowing program with the Yuma Mesa Irrigation and Drainage District at our Associated Citrus Packers ranch. At Limoneira, we have long been an advocate of prudent and efficient water management and continue to be a leader in conservation and preservation efforts within the greater Western United States,” Harold Edwards, President and Chief Executive Officer, stated. “With today’s agreement, we will not only help to further our sustainability initiatives through efforts to minimize fresh water shortages to residents in Arizona and the Lower Basin but also create value within our existing asset base. We continue to evaluate all potential options for our assets with the goal of further deleveraging the company’s balance sheet and unlocking significant value for our shareholders.”
The Lower Colorado River Basin is currently in a declared shortage, with reduced allocations being enforced in Arizona. As explained in a press release, the citrus purveyor’s Associated Citrus Packers ranch includes 1,300 acres of land, comprised approximately of 900 acres of productive lemon orchards and 400 acres of other crops and facilities with access to the Colorado River for crop irrigation.
With this new program put in place, the supplier will have approximately 700 acres of productive lemons, 400 fallowed acres, and 200 acres of other crops. As well as conserving natural water resources, the program also converts previously unprofitable acreage to profitable, with an estimated annual increase in operating results of approximately $1 million.
Following the implementation of this program, Limoneira will continue to leverage its existing supply chain for the 700 acres of lemons, with plans to add more grower partners in the Yuma region, resulting in an increase in lemon volume.
As suppliers continue to put new strategies in place to drive profitable growth and optimize their operational efficiencies, read all about it here at AndNowUKnow.
