IDEAS home Printed from https://ideas.repec.org/a/ags/wjagec/32476.html
   My bibliography  Save this article

Impacts Of Energy Cost Increases On Irrigated Land Values

Author

Listed:
  • Whittlesey, Norman K.
  • Herrell, Jon P.

Abstract

Irrigation development in the Pacific Northwest expanded rapidly during the 1960s and 1970s when economic conditions, including very cheap electricity for pumping water, were favorable for this activity. Thousands of acre of land were irrigated that required lifting water 400 feet or more. The cost of energy for irrigation pumping has risen as much as 400% in recent years, and many of these high pump lift farms are in serious economic difficulty. This study shoes that farms with pump lifts exceeding 400 feet will not be able to replace capital irrigation equipment to remain in production in the long run. Land values on these farms will be determined by dryland production alternatives leaving no rents to sustain the incentive for irrigation.

Suggested Citation

  • Whittlesey, Norman K. & Herrell, Jon P., 1987. "Impacts Of Energy Cost Increases On Irrigated Land Values," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(1), pages 1-7, July.
  • Handle: RePEc:ags:wjagec:32476
    DOI: 10.22004/ag.econ.32476
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/32476/files/12010001.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.32476?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Emanuel Melichar, 1984. "A financial perspective on agriculture," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Jan, pages 1-13.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Edwards, Brian K. & Howitt, Richard E. & Flaim, Silvio J., 1996. "Fuel, crop, and water substitution in irrigated agriculture," Resource and Energy Economics, Elsevier, vol. 18(3), pages 311-331, October.
    2. Konyar, Kazim, 2001. "Assessing the role of US agriculture in reducing greenhouse gas emissions and generating additional environmental benefits," Ecological Economics, Elsevier, vol. 38(1), pages 85-103, July.
    3. Schlenker, Wolfram & Hanemann, W Michael & Fisher, Anthony C, 2007. "Water Availability, Degree Days, and the Potential Impact of Climate Change on Irrigated Agriculture in California," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt8q8309qn, Department of Agricultural & Resource Economics, UC Berkeley.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tweeten, Luther, 1984. "Experience In Working To Improve Rural And Agricultural Statistics," 1984 Annual Meeting, August 5-8, Ithaca, New York 278964, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Wilson, Paul N. & Gundersen, Carl E., 1985. "Financial Risk In Cotton Production," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(2), pages 1-8, December.
    3. Michael T. Belongia & R. Alton Gilbert, 1986. "Commercial bank lending to agriculture: a comparison of rural independent banks and holding company subsidiaries," Working Papers 1986-005, Federal Reserve Bank of St. Louis.
    4. Olson, Kent D. & Mikesell, Chris L., 1990. "Impacts Of The Farm Financial Crisis: Results Of The 1989 Regional Farm Survey For Minnesota," Staff Papers 14280, University of Minnesota, Department of Applied Economics.
    5. Innes, Robert, 1987. "Agency Costs, Farm Debt And Foreclosure: Positive And Policy Issues," Working Papers 225811, University of California, Davis, Department of Agricultural and Resource Economics.
    6. Duval, Yann & Kastens, Terry L. & Featherstone, Allen M., 2002. "Financial Classification Of Farm Businesses Using Fuzzy Systems," 2002 Annual meeting, July 28-31, Long Beach, CA 19596, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Featherstone, Allen M. & Schroeder, Ted C. & Burton, Robert O., Jr., 1988. "Allocation Of Farm Financial Stress Among Income, Leverage, And Interest Rate Componenets: A Kansas Example," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 20(2), pages 1-10, December.
    8. Featherstone, Allen M. & Schroeder, Ted C. & Burton, Robert O., Jr., 1987. "Component Causes Of Farm Financial Stress," Staff Papers 133706, Kansas State University, Department of Agricultural Economics.
    9. Joseph, Anthony & Reinsel, Robert D., 1986. "The Financial Condition of Agriculture: An Income Analysis," 1986 Annual Meeting, July 27-30, Reno, Nevada 278072, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. B. James Deaton & Chad Lawley, 2022. "A survey of literature examining farmland prices: A Canadian focus," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(2), pages 95-121, June.
    11. Hopp, Fredrick Neal, 1994. "A financial analysis of grain marketing and production supply cooperatives, 1985-1991," ISU General Staff Papers 1994010108000017637, Iowa State University, Department of Economics.
    12. Schnitkey, Gary D. & Taylor, C. Robert, 1987. "Conventional Capital Budgeting Versus Stochastic Dynamic Analysis Of Optimal Farmland Purchase And Sell Decisions," Illinois Agricultural Economics Staff Paper 244662, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics.
    13. McDowell, Howard & Kramer, Randall A. & Price, J. Michael, 1989. "An Analysis Of U.S. Farm Income Policies: Historical, Marketing-Determined, And Sector-Wide Stabilization," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(2), pages 1-11, December.
    14. Olsen, Douglas Ray, 1990. "An analysis of the use of farm marketing and crop insurance risk transfer tools by Iowa farm characteristics," ISU General Staff Papers 1990010108000018157, Iowa State University, Department of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:wjagec:32476. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.