Economic impacts of groundwater quality legislation on central Arizona cotton farmers

Abstract

The profitability effects on central Arizona cotton producers resulting from the regulation of agricultural chemicals was estimated. Evaluating the economic effects on farmers is an important consideration in the development of groundwater protection policy as mandated by Arizona's 1986 Environmental Quality Act. A survey was taken of Pest Control Advisors in Maricopa and Pinal Counties to determine the substitutions which take place between various agricultural chemicals and the estimated resulting change in cotton lint yield. Technical data regarding nitrogen fertilizer applications was taken from local studies done by personnel from Cooperative Extension. This data was analyzed using comparative farm budgeting techniques. Significant effects were estimated for the elimination of certain specific agricultural chemical inputs, while others projected only minimal effects due to the availability of substitute products. Detailed sensitivity analyses were performed to determine the effects of changing production and cost parameters assumed in the model.