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Returns To Public Irrigation Development And The Concomitant Costs Of Commodity Programs

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  • Martin, William E.

Abstract

Development of agriculture, and associated agricultural problems, have had a prominent place in congressional deliberations virtually throughout the history of the United States (Benedict). Early policy stressed land development, and the Reclamation Act of 1902 was in such spirit. It was "An Act Appropriating the receipts from the sale and disposal of public lands in certain States and Territories to the construction of irrigation works for the reclamation of arid lands." With later modifications of policy to provide greater sources of income for works construction, Congress continues to support the Bureau of Reclamation's water development, output increasing activities. Yet, since 1929, with time out for war, the federal government also has effected commodity programs designed to reduce the supply of major agricultural commodities so as to maintain product prices "at levels that would be above the market price in a free and reasonably normal market situation"(Benedict, p. 517). Such a situation would tend to strike most economists as peculiar (inefficient). Howe and Easter estimated the annual costs of commodity programs directly related to reclamation irrigation in the range of $83 million to $179 million during the period 1944 to 1964 (p. 143). Some of the "facts" generated by these apparently contradictory policies are the subject of this paper.

Suggested Citation

  • Martin, William E., 1979. "Returns To Public Irrigation Development And The Concomitant Costs Of Commodity Programs," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 277609, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea79:277609
    DOI: 10.22004/ag.econ.277609
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    References listed on IDEAS

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    1. Young, Robert A., 1978. "Economic Analysis And Federal Irrigation Policy: A Reappraisal," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 3(2), pages 1-12, December.
    2. Currie, John Martin & Murphy, John A & Schmitz, Andrew, 1971. "The Concept of Economic Surplus and its Use in Economic Analysis," Economic Journal, Royal Economic Society, vol. 81(324), pages 741-799, December.
    3. George, P.S. & King, Gordon A., 1971. "Consumer Demand for Food Commodities in the United States with Projections for 1980," Monographs, University of California, Davis, Giannini Foundation, number 11936, December.
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    1. Small, L. E. & Adriano, M. S. & Martin, E. D. & Bhatia, R. & Shim, Y. K. & Pradhan, P., 1989. "Financing irrigation services: a literature review and selected case studies from Asia," IWMI Books, Reports H005735, International Water Management Institute.
    2. Bajwa, Rajinder S., 1982. "Irrigation In Humid Regions An Annotated Interdisciplinary Bibliography," Staff Reports 276735, United States Department of Agriculture, Economic Research Service.
    3. K Wernstedt, 1995. "Regional Environmental Policy and the Distribution of Economic Impacts among Rural Households," Environment and Planning A, , vol. 27(4), pages 645-662, April.

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