E. O’Donnell, L. Nogueira, C. Walters, E. Peterson, S. Irmak
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Economics of deficit irrigation utilizing soil moisture probes in the western corn belt
Effective irrigation management is critical for future food supplies and the prosperity of producers engaged in irrigation production. Through a deficit irrigation field experiment, we determine the financial impact on producers caused by changing irrigation costs, corn prices, extreme weather events, and restricting irrigation levels. Results suggest that the optimal economic strategy within our constrained optimization model is to fully irrigate, with the economic impact highly dependent on commodity prices, restriction level, and irrigation costs. The greatest economic losses caused by irrigation restrictions come from decreases in yield. Some simulations resulted in negative profits, indicating that a switch to alternative crops requiring less irrigation may be warranted.
期刊介绍:
The purpose of the Review is to foster and disseminate professional thought and literature relating to the economics of agriculture, natural resources, and community development. It is published twice a year in April and October. In addition to normal refereed articles, it also publishes invited papers presented at the annual meetings of the NAREA as well as abstracts of selected papers presented at those meetings. The Review was formerly known as the Northeastern Journal of Agricultural and Resource Economics