Innovation in Agricultural Water Pricing Systems in China Based on Irrigation Benefits

The comprehensive reform of agricultural water prices is an important component of China’s agricultural water conservation strategy and is highly important for ensuring national water security and sustainable agricultural development. Given the difficulty in raising water prices due to the limited carrying capacity of farmers in the reform, there is a pressing need to consider the implementation of agricultural water price sharing as a potentially viable strategy. Based on the grain production data from 2000 to 2018, the proportion of agricultural water prices borne by farmers and governments in different regions were calculated via the C-D production function method and the “Mitchell scoring + Expert scoring” method in the study. The results revealed that the average sharing coefficient of irrigation benefits for grain crops in China is 0.245. The sharing proportion of agricultural water prices for farmers in seven major geographical regions are ranked as follows: Northwest China (0.467) > Central China (0.427) > Southwest China (0.389) > Northeast China (0.358) > North China (0.319) > East China (0.312) > South China (0.163), while the sharing proportion of the government is 0.533, 0.573, 0.611 0.642, 0.681, 0.688, and 0.837. We proposed a systematic approach that directly ties cost distribution to the benefits received, and determined the proportion of agricultural water prices shared by farmers and governments, which is in line with the farmers’ economic interests and psychological demands. Furthermore, suggestions were proposed regarding the implementation of a rational agricultural water price-sharing policy.