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    The Water Use and Climate Effects on Farm Profitability in Colorado River Basin

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    Author
    Qiao, Xin
    Issue Date
    2018
    Keywords
    economic effects
    Farm profiability
    Net farm income
    water cutbacks
    Water use
    Weather and climate factors
    Advisor
    Frisvold, George B.
    
    Metadata
    Show full item record
    Publisher
    The University of Arizona.
    Rights
    Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
    Abstract
    The Colorado River is the lifeblood of the southwestern United States. The imbalance between water supply and demand in this basin has been increasing and conditions are projected to worsen with climate change and population growth. Because agriculture is a major user of groundwater and surface water in this region, federal and state agencies suggest that substantial cuts in agricultural water use will be required to re-balance water supply and demand. Such cutbacks, though, impose opportunity costs in the form of lost agricultural production and farm income. This study considers the regional distribution of net returns to irrigated agriculture in Colorado Basin states to address where such opportunity costs will be low and high. In some counties, net farm returns per acre of irrigated land or per acre-feet of water applied are quite high, while in others areas are low. The study also examines which factors determine why farm profitability is low or high across counties. The relationship between net farm income and a set of climate, water resource availability and farm characteristic variables for the seven Colorado Basin states is examined using county-level data from 2005 and 2010. Regression results indicate that county level farm income per irrigated acre and per acre foot of water applied are significantly influenced by temperature, precipitation and reliance on groundwater relative to surface water. A simple rationing model is applied to examine potential costs of large reductions in water use that might occur under land fallowing programs. If fallowing were concentrated in areas with the lowest gross revenues per acre foot of water, even substantial reductions in water use would have only a minimal effect on the value of regional production.
    Type
    text
    Electronic Thesis
    Degree Name
    M.S.
    Degree Level
    masters
    Degree Program
    Graduate College
    Agricultural & Resource Economics
    Degree Grantor
    University of Arizona
    Collections
    Master's Theses

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