Once roughly $1,600 a share, Colorado population growth lands family nearly $5 million for 90 shares of Big Thompson River
As the population of Colorado continues to grow, especially in the northern half of the state, the demand and price of water continue to grow. That was evident on Wednesday as one Northern Colorado family sold their 90 shares of rights to the Big Thompson River for nearly $5 million at auction.
"It is crazy to see what water has done, what Colorado has done," said Scott Shuman of Hall and Hall Auction.
Shuman auctioned off the 90 shares, previously owned by Carol Yoakum and her late husband.
As recently as the 1990s, some water shares in the region were being sold for around $1,600, according to local farmer and water rights owner Don Martin.
"Everything is going up in price. But, water, people are figuring out water is going to be really scarce," Martin said.
Martin was one of dozens of prospective buyers who attended the auction at the Boulder County Fairgrounds. There were developers, farmers and employees of local municipalities seeking to buy a stake in the river that flows from Estes Park east through Loveland and more.
"This is a very unique auction. Not often are water units put out to the public in an open transparent way," Schuman said.
Bidders came with deep wallets, with some bidding more than $70,000 a share before fees. Some looked to purchase more than 12 shares while others sought to buy individual shares.
In order to place a bid, participants had to prove in advance that they have a current need for water rights. That made it more difficult for investors to swoop in and purchase all of the rights purely to turn a profit as demand continued to rise.
"You have these finite resources, it is more competition for people who need them," Shuman said.
Yoakum told CBS News Colorado's Dillon Thomas that she decided to part with her rights to the water after she lost her husband in 2023. After he passed away she decided to sell the family farm and relocate to the more urban community in Longmont.
However, she said the water rights were an investment her husband made many years ago in anticipation of the population growth. She noted of their great success story in agriculture in the northern Colorado region.
"My husband and I came here with $5 and a five-week-old baby," Yoakum recalled of their move to Colorado decades ago.
The couple worked with horses for many years before transitioning to running a farm outside of Longmont. The couple decided to invest in the "Big T," as she called it, as a way to secure money for their retirement and family.
"There are shares that sold years ago for $10,000," Yoakum said.
However, on Wednesday, her shares were sold for an average price of more than $52,000 each.
The shares she sold did not include those that belonged to the farm she recently sold, as those shares were part of the deal with the buyer.
Even though the market rate for the shares was nearly 50 times more than what his parents paid for similar shares in the 1990s, Martin said he felt confident in his successful bids for two shares.
"I am not a financial expert, but I think it is a good investment," Martin said.
Martin, who grows and sells hay for a living, said the water will be a great resource for his current irrigation needs. But, he also admitted this was an investment he was looking forward to passing along to his children one day.
"It is a little bit more water for me, and I think it is a good investment. Water is getting short every year. It is more scarce," Martin said. "By the time I am gone, my kids will have something to look forward to."
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