Premium
AGGREGATE MARGINAL RETURNS FROM WESTERN IRRIGATED AGRICULTURE 1
Author(s) -
Long Roger B.
Publication year - 1987
Publication title -
jawra journal of the american water resources association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.957
H-Index - 105
eISSN - 1752-1688
pISSN - 1093-474X
DOI - 10.1111/j.1752-1688.1987.tb00863.x
Subject(s) - irrigation , acre , agriculture , agricultural economics , livestock , production (economics) , economics , environmental science , irrigated agriculture , farm income , water supply , agroforestry , agronomy , geography , environmental engineering , forestry , macroeconomics , archaeology , biology
Pressure is increasing in the western United States to reallocate water from irrigated agriculture to other competitive uses. Since water is normally allocated through water rights and not necessarily by the price system, the question of economic efficiency is a continual concern. Study results show that returns per acre‐foot of water used in western irrigation are quite high and are closely tied to the livestock industry. Returns per acre‐foot of water used for crops ranged from $60 to $1,500. When water was used to support livestock, returns per acre‐foot ranged from $100 to $600. Clearly, losses of water supply that reduced irrigation production could also lower farm income significantly. Estimated returns also show what alternative uses would have to pay for water under competitive market conditions. Production elasticities are also shown for various states.