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Effects of Water Supply on Labor Demand and Agricultural Production in California's San Joaquin Valley

Author

Listed:
  • Cameron Speir

    (NOAA, National Marine Fisheries Service, Santa Cruz, CA, USA)

  • Aaron Mamula

    (NOAA, National Marine Fisheries Service, Santa Cruz, CA, USA)

  • Daniel Ladd

    (Center for Stock, Assessment Research, University of California, Santa Cruz, CA, USA)

Abstract

We estimate the effect of changes in water deliveries from large projects on agricultural production. We estimate a region-scale, multi-output production model of the San Joaquin Valley of California using observed historical data. The model incorporates seven crop outputs and the labor input as functions of project water supply, groundwater pumping price, other surface water sources, wages, and crop prices. We find that: (1) reduced irrigation water supply reduces the demand for farm labor and the production of some crops, (2) regional production mix tends to shift towards cotton when water supply is high and (3) some structural change has occurred over the course of our 22 year study period, with production of annual crops becoming more sensitive to changes in project water supply and labor becoming less sensitive to local surface water conditions.

Suggested Citation

  • Cameron Speir & Aaron Mamula & Daniel Ladd, 2015. "Effects of Water Supply on Labor Demand and Agricultural Production in California's San Joaquin Valley," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(02), pages 1-27.
    • Handle: RePEc:wsi:wepxxx:v:01:y:2015:i:02:n:s2382624x15500034
    DOI: 10.1142/S2382624X15500034
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    References listed on IDEAS

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    1. Schuck, Eric C. & Green, Gareth P., 2002. "Farm Level Irrigation Technology Decisions Over Time," 2002 Annual meeting, July 28-31, Long Beach, CA 19632, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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