Irrigated row-crop agriculture is contributing to declining groundwater in areas such as the Mississippi Delta region of eastern Arkansas. There is a need to move toward sustainable levels of groundwater withdrawal. Recent improvements in remote monitoring technologies such as wireless soil moisture sensors and unmanned aerial vehicles offer the potential for farmers to effectively practice site-specific variable-rate irrigation management for the purpose of applying water more efficiently, reducing pumping costs, and retaining groundwater. Soil moisture sensors and unmanned aerial vehicles are compared here in terms of their net returns per acre-foot and cost-effectiveness of aquifer retention. Soil moisture sensors ($9.09 per acre-foot) offer slightly more net returns to producers than unmanned aerial vehicles ($7.69 per acre-foot), though costs associated with unmanned aerial vehicles continue to drop as more manufacturers enter the market and regulations become clear.
4 April 2017 in Journal of Agricultural and Applied Economics
This study investigates which factors may influence producers’ use of irrigation technologies and/or water management practices (WMPs). One major finding is that Arkansas producers are more likely to rely on WMPs instead of sprinkler irrigation as a response to changes in depth to water and drought occurrences. This finding highlights the importance of expanding the existing literature that focuses mostly on more efficient irrigation technologies, especially in areas where WMPs are more prevalent. Climate factors also play a role. Sprinkler systems are more prevalent in regions with lower average temperature. WMPs are used to mitigate the impact of more frequent droughts.
An irrigated agricultural landscape experiencing groundwater overdraft generates economic returns and a suite of ecosystem services (in particular, groundwater supply, greenhouse gases reduction, and surface water quality). Alternative land cover choices indicate tradeoffs among the value of ecosystem services created and the economic returns. These tradeoffs are explored using efficiency frontiers that determine the least value in ecosystem services that must be given up to generate additional economic returns. Agricultural producers may switch to irrigation with surface water using on-farm reservoirs and tail water recovery systems in response to groundwater overdraft, and this has consequences for the bundle of ecosystem service values and economic returns achievable from the landscape. Planning that accounts for both ecosystem service value and economic returns can achieve more value for society, as does the adoption of reservoirs though lowering the costs of irrigation, increasing groundwater levels, and reducing fuel combustion and associated GHG emissions from groundwater pumping. Sensitivity analyses of per unit value of ecosystem services, crop prices, and the groundwater and water purification model parameters indicate tradeoff among ecosystems service values, such as the use of a high-end social cost of carbon ultimately lowers groundwater supply and water purification value by more than 15%.
28 June 2019 in Journal of Agricultural and Applied Economics
Producers often contemplate expanding or contracting production to take advantage of cyclical cattle price trends. This study quantifies profitability and risk implications of (1) constant herd size, (2) dollar cost averaging, and (3) price signal-based, anticipatory countercyclical expansion/contraction strategies. Weather simulation on forages with different calving season and land use intensity showed fall calving herds with added hay sales from greater fertilizer use and the countercyclical herd size management strategy to be most profitable regardless of weather or time period analyzed. Income risk was comparable to least fertilizer use. Overall, holding herd size constant led to little regret.