re: BWEL
Spek,
James Duade's SA article on Farmageddon had the documentation for the following sales in FY 2020 (7/1/2019 - 6/30/2020). I don't know where this shows up in the financial statements.
Recent Water Sales Indicate That J.G. Boswell is Selling up to 100,000 Acre-Feet of Water in FY 2020 The sale or transfer of water from one water district to another requires state water board approval in California. These records can be viewed on the California Environmental Quality Assurance website. In reviewing recent water sales, it appears that Boswell has requested approval for two significant water sales in 2019, one for 35,000 acre-feet to the Kern Water Authority, and another for 65,000 acre-feet to growers in the Westlands Water District.
Source: 65,000 Acre-Feet Sale to Water Districts from Boswell
Source: 35,000 Acre-Foot Sale to KWA
If we use the recent Tejon Ranch water sales as a proxy for the upcoming Boswell sales, then we can predict that Boswell will earn revenue of $89.5 million (i.e., 100,000 Acre-Feet * $895.39 per acre-foot). Since the water sales are generally high margin, it is reasonable to assume that the majority of the revenue from these sales will be booked as profit for the company.
Cheers,
Sully |
