IDEAS home Printed from https://ideas.repec.org/p/ags/aare99/123810.html
   My bibliography  Save this paper

Economics of Reduced Water Allocations: Estimating Impacts on the Northern Victorian Dairy Industry

Author

Listed:
  • Gyles, Oliver
  • Baird, Catherine A.
  • Brown, Stuart

Abstract

Water use efficiency data was used to estimate the impact of reducing sales water allocations on a range of irrigated dairy farms categorised according to intensity of water right. The expected deficiency in available water was estimated for each farm category on the basis of historical demand for sales and the potential production loss estimated. The cost of substitution through management options of purchasing 1) water right (with associated sales), 2) temporary sales water, or 3) feed supplements as grain or hay and silage was calculated. Purchase of water right was found to be the cheapest option and the regional transfer volume required estimated at 93 GL of water right valued at A$ 60.7 million. The average transfer requirement was estimated at 31 ML per property, or A$ 20,000 in capital expenditure. The estimated cost of the transfer requirement for a large low security farm was A$ 240,000. Current water policy activity is seeking instruments to reduce industry impacts. Given the operation of a market since 1991/92, options which redefine water property rights and enable reallocation of sales entitlement have potential to be inequitable for irrigators already using prudent risk management strategies for water security.

Suggested Citation

  • Gyles, Oliver & Baird, Catherine A. & Brown, Stuart, 1999. "Economics of Reduced Water Allocations: Estimating Impacts on the Northern Victorian Dairy Industry," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123810, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare99:123810
    DOI: 10.22004/ag.econ.123810
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/123810/files/GylesBaird.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.123810?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
    ---><---

    Citations

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


    Cited by:

    1. Ho, Christie K.M. & Nesseler, R. & Doyle, Peter T. & Malcolm, Bill, 2005. "Future dairy farming systems in irrigation regions," AFBM Journal, Australasian Farm Business Management Network, vol. 2(1), pages 1-10.
    2. Gyles, Oliver, 2001. "Water Use Efficiency at the Farm and Regional Level: The Economics of Response and the Furphy of Excellence," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125647, Australian Agricultural and Resource Economics Society.
    3. Gyles, Oliver, 2002. "Estimating benefits for dairy production systems from sustainable irrigation practices: Intervention and adjustment in Victorian Land and Water Management Plans," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125094, Australian Agricultural and Resource Economics Society.

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    Statistics

    Access and download statistics

    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:aare99:123810. 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.

    We have no bibliographic references for this item. You can help adding them by using 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/aaresea.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.