# Water Rights Valuation Engine AI Agent Connect

> Economic assessment of agricultural water rights using income and market methods.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_GFiE5LqicTO51980K0GJR9xXRr6aefzLe9OApsVk/ai-agent-connect
- **Tags:** water-rights, valuation, agriculture, economics, drought-risk

## Description

This MCP server provides specialized tools for the economic valuation of agricultural water rights. It allows users to determine the expected annual yield using `calculate_annual_yield`, estimate the total current worth via `calculate_present_value`, and evaluate competitiveness through `compare_to_market`. Additionally, it can model environmental risks using `assess_drought_impact` to adjust reliability based on drought severity. It is designed for agricultural economists and water managers to assess asset value based on allocation, reliability, and market conditions.

## Tools

### calculate_annual_yield
Determines the expected economic output of the water right for a single year

### assess_drought_impact
Adjusts the reliability of the water right based on environmental risk factors

### compare_to_market
Evaluates whether the calculated value of the water right is competitive compared to current market trading prices

### calculate_present_value
Estimates the total current worth of the water right over its useful life

## Prompt Examples

**Prompt:** 
```
What is the expected annual value for 500 acre-feet of water with 90% reliability and a crop value of $150 per acre-foot?
```

**Response:** 
```
The expected annual value is $67,500.
```

**Prompt:** 
```
Calculate the present value for a water right with an annual value of $50,000, a 20-year utility, a 5% discount rate, and a priority factor of 1.2.
```

**Response:** 
```
The present value of the water right is $754,518.15.
```

**Prompt:** 
```
If the current reliability is 0.85 and the drought severity index is 0.4, what is the adjusted reliability?
```

**Response:** 
```
The adjusted reliability is 0.68.
```

## Frequently Asked Questions

**How does the engine account for drought risk?**
The `assess_drought_impact` tool adjusts the reliability of a water right based on a drought severity index, reducing the expected availability of water during periods of scarcity.

**Can I compare my calculated value to local market prices?**
Yes, you can use the `compare_to_market` tool to compare your calculated valuation against current local market rates per acre-foot.

**What is the difference between annual yield and present value?**
Annual yield is the expected economic output for a single year, while present value is the total current worth of the water right over its entire useful life, discounted to today.