Economics of deficit irrigation utilizing soil moisture probes in the western corn belt

O’Donnell, Emily, Lia Nogueira, Cory G. Walters, E. Wesley Peterson and Suat Irmak

Agricultural and Resource Economics Review, 2023, vol. 52, issue 3, 563-581

Abstract: Effective irrigation management is critical for future food supplies and the prosperity of producers engaged in irrigation production. Through a deficit irrigation field experiment, we determine the financial impact on producers caused by changing irrigation costs, corn prices, extreme weather events, and restricting irrigation levels. Results suggest that the optimal economic strategy within our constrained optimization model is to fully irrigate, with the economic impact highly dependent on commodity prices, restriction level, and irrigation costs. The greatest economic losses caused by irrigation restrictions come from decreases in yield. Some simulations resulted in negative profits, indicating that a switch to alternative crops requiring less irrigation may be warranted.

Date: 2023
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