Farmers “leasing” their irrigation permits to the state could produce rainfed crops or leave their land idle for the season. Assuming an average irrigation diversion of 7,623 m3 per hectare, the USD337 per hectare average price reflects an incremental value of irrigation of about USD44 per 1,000 m . The Reclamation Act of 1902, which created the U.S. Bureau of Reclamation for the purpose of promoting irrigation in the 17 western states, contained generous provisions that allowed farmers to repay only the capital cost of construction, with no interest charges.