A MULTICROP PRODUCTION MODEL OF IRRIGATED AGRICULTURE, APPLIED TO WATER ALLOCATION POLICY OF THE BUREAU OF RECLAMATION

Michael R. Moore and Donald H. Negri

Journal of Agricultural and Resource Economics, 1992, vol. 17, issue 01, 15

Abstract: Recipients of irrigation water from the Bureau of Reclamation (BuRec) face a future of water conservation. By formally modeling surface water as a fixed, allocatable input to a multioutput firm, this research captures the institutional constraints governing water allocation and , simultaneously, establishes a cohesive approach to analyzing the production effects of BuRec allocation policy. Econometric results show that BuRec-served irrigators' crop supply and land allocation decisions are generally inelastic with respect to the water constraint. Using the elasticities, a policy simulation of a 10% reduction in BuRec water allocation indicates that production response to reduced water supply would affect the national price of three of ten major crops produced by BuRec-served farms.

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Date: 1992
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:30736

DOI: 10.22004/ag.econ.30736

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