Is water an allowable expense for CAIS?
A. Water used for production (irrigating crops or watering livestock) is an allowable expense for CAIS, as it is directly related to the production of a commodity. Water used for production should be reported as a commodity purchase for the related commodity. Only the cost of the water itself is allowable. Expenses for hauling water, capital items like irrigation systems and installation, or water paid for via municipal taxes (because the cost of the water itself cannot be broken out), are non-allowable.
