The synergy between water conservation and economic profitability of adopting alternative irrigation systems for cotton production in the Texas High Plains

Yubing Fan, Sushil K. Himanshu, Srinivasulu Ale, Paul B. DeLaune, Tian Zhang, Seong C. Park, Paul D. Colaizzi, Steven R. Evett and R. Louis Baumhardt

Agricultural Water Management, 2022, vol. 262, issue C

Abstract: Declining water levels of the Ogallala Aquifer challenge economic availability of the groundwater and necessitate adoption of advanced irrigation systems with efficient irrigation strategies. Irrigation methods and application levels affect water productivity and farm profitability. This study evaluated the synergy between water conservation through a deficit irrigation strategy and economic profitability of agricultural production. The economic feasibility of cotton production was compared using field data for mid- and low-elevation spray application (MESA and LESA, respectively), low-energy precision application (LEPA), and subsurface drip irrigation (SDI) systems in the Texas High Plains (THP) region. Treatments included irrigated cotton with water application at 25%, 50%, 75%, and 100% evapotranspiration (ET) replacement levels and near-dryland cotton production. Both field-level data and well-calibrated model simulation data were used to assess cotton profitability at varying risk attitudes of producers. Results showed that more irrigation water consistently increased average net return of cotton production for all irrigation systems, except for SDI, which produced a similar net return at both 75% and 100% ET replacement levels. A larger chance of getting a net return greater than $380 ha−1 was observed for MESA, LESA and LEPA systems with the full irrigation at the 100% ET replacement level as well as for SDI with 75% ET replacement. Economic risk analysis showed that LEPA had a higher net return than other systems at each of the four irrigation levels and it would be preferred by risk-neutral, somewhat risk-averse, and rather risk-averse cotton producers. For each irrigation system, full irrigation was most preferred by risk-neutral producers and only minor differences were observed in the expected returns between 75% and 100% ET replacements as the producers became somewhat or more risk-averse. Groundwater conservation can be achieved with SDI without compromising crop yield or farm income, while government policies and financial incentives can help motivate producers to save irrigation water and maintain a high farm profit under spray and LEPA systems.

Keywords: Cotton; Irrigation system; Profitability; Water conservation; Certainty equivalent; Risk premium; Ogallala Aquifer (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:agiwat:v:262:y:2022:i:c:s0378377421006636

DOI: 10.1016/j.agwat.2021.107386

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