Investment in Water Saving Technology on Horticultural Farms
AbstractA long run programming model for analysing investment behaviour on perennial crop farms is formulated and applied to citrus and wine grape producing farms in the Murumbidgee Irrigation Area. Prices and technological parameters are defined exogenously, while the optimal replanting pattern of the crops and the optimal mix of irrigation techniques are determined endogenously. The model is used to examine likely investment in water saving irrigation technology at different crop prices and input costs. The results indicate that such investment is a profitable option at current water charges, particularly for those farmers with access to off-farm employment However, the adoption decision will be highly sensitive to potential cost savings. Water-saving technology could become more attractive under higher water charges, but only if the preferred option of farm expansion were not available. The modelling framework, which allows for control over many factors influencing perennial crop investment decisions' has applications in the analysis of the long term consequences of many policy options affecting farm yields or prices.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Australian Agricultural and Resource Economics Society in its journal Review of Marketing and Agricultural Economics.
Volume (Year): 60 (1992)
Issue (Month): 02 (August)
Contact details of provider:
Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
Phone: 0409 032 338
Web page: http://www.aares.info/
More information through EDIRC
Other versions of this item:
- Mallawaarachchi, Thilak & Hall, Nigel H. & Phillips, Brian, 1991. "Investment in Water Saving Technology on Horticultural Farms," 1991 Conference (35th), February 11-14, 1991, Armidale, Australia 145924, Australian Agricultural and Resource Economics Society.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stoneman, Paul L & David, Paul A, 1986. "Adoption Subsidies vs Information Provision as Instruments of Technology Policy," Economic Journal, Royal Economic Society, vol. 96(380a), pages 142-50, Supplemen.
- Rae, Allan N., 1970. "Capital Budgeting, Intertemporal Programming Models, With Particular Reference To Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 14(01), June.
- Steigum, Erling, Jr, 1983. "A Financial Theory of Investment Behavior," Econometrica, Econometric Society, vol. 51(3), pages 637-45, May.
- Alaouze, Chris M. & Fitzpatrick, Campbell R., 1989. "A Mixed Integer Linear Programming Evaluation Of Salinity And Waterlogging Control Options In The Murray-Darling Basin Of Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(03), December.
- H. W. Arndt & Burgess Cameron, 1957. "An Australian Consumption Function," The Economic Record, The Economic Society of Australia, vol. 33(64), pages 108-115, 04.
- Freebairn, J W, 1977. "Inflation and Stability of the Household Consumption-Savings Function," The Economic Record, The Economic Society of Australia, vol. 53(142&143), pages 198-218, June-Sept.
- Marc Nerlove, 1979. "The Dynamics of Supply: Retrospect and Prospect," Discussion Papers 394, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Mallawaarachchi, T. & Walker, P. A. & Young, M. D. & Smyth, R. E. & Lynch, H. S. & Dudgeon, G., 1996. "GIS-based integrated modelling systems for natural resource management," Agricultural Systems, Elsevier, vol. 50(2), pages 169-189.
- Mallawaarachchi, Thilak, 2002. "Assessing Best-Practice Environmental Management Options at the decision scale: a model for technology choice and policy analysis," 2002 Conference (46th), February 13-15, 2002, Canberra 125136, Australian Agricultural and Resource Economics Society.
- Qureshi, Muhammad Ejaz & Mallawaarachchi, Thilak & Wegener, Malcolm K. & Bristow, Keith L. & Charlesworth, Philip B. & Lisson, Shaun N., 2001. "Economic evaluation of alternative irrigation practices for sugarcane production in the Burdekin Delta," 2001 Conference (45th), January 23-25, 2001, Adelaide 125867, Australian Agricultural and Resource Economics Society.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.