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Return on investment in irrigation practices in response to the rate of adoption on an agricultural landscape

Author

Listed:
  • Adams, Kerr
  • Kovacs, Kent
  • West, Grant

Abstract

Concerns about groundwater depletion from conventional agricultural irrigation in the Mississippi Delta have led to the technological innovation of more-efficient irrigation practices. With Arkansas being the largest producer of rice and the tenth largest producer of soybeans in the United States, the irrigation demand of these crops has put pressure on producers to find ways to irrigate more efficiently. Research into water conserving irrigation techniques has helped preserve water resources, maintain yields, and maximize farm profits. As groundwater levels in the Delta continue to decrease, the price of pumping water increases, making the prospect of investment in new technologies more attractive. The paper will address potential returns on investment in efficient irrigation practices for furrow irrigated soybeans and flood irrigated rice. The depletion of the aquifer and the return on investment from efficient irrigation practices depends on the well-pumping decision of farms across the landscape. More farms adopting the efficiency-enhancing practices will increase the return on investment in those practices because these methods stabilize groundwater levels across the landscape. We explore how the rate of adoption of efficient irrigation practices on the landscape ultimately influence the return on investment.

Suggested Citation

  • Adams, Kerr & Kovacs, Kent & West, Grant, 2017. "Return on investment in irrigation practices in response to the rate of adoption on an agricultural landscape," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252734, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea17:252734
    DOI: 10.22004/ag.econ.252734
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    References listed on IDEAS

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    1. Lembke B., 1918. "√ a. p," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 111(1), pages 709-712, February.
    2. Hignight, Jeffrey & Watkins, K. & Anders, Merle M., 2009. "Economic Analysis of Zero-Grade Rice and Land Tenure," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2009, pages 1-10.
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