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Groundwater Quality and Farm Income: What Have We Learned?

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  • Linda K. Lee

Abstract

In response to public concerns, economists and other scientists have conducted research on agricultural chemicals and groundwater quality since the 1980s. The results of twenty-one studies conducted in various regions of the U.S. that examine the relationships between agrichemical treatments on crops, farm income, and groundwater quality both at the farm level and at the aggregate level are reviewed. Analysis of these studies indicates that across most regions, chemicals, and types of farms there is a trade-off between farm income and increased groundwater quality. In some situations, marginal improvements in groundwater quality can be achieved with limited reductions or even modest increases in farm income. However, most studies indicate that as reductions in agricultural chemical leaching to groundwater increase, reductions in farm income increase as well. Some issues for consideration in future research and extension projects in this arena are presented.

Suggested Citation

  • Linda K. Lee, 1998. "Groundwater Quality and Farm Income: What Have We Learned?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(1), pages 168-185.
    • Handle: RePEc:oup:revage:v:20:y:1998:i:1:p:168-185.
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    File URL: http://hdl.handle.net/10.2307/1349541
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    Cited by:

    1. Athukorala, Wasantha & Wilson, Clevo & Managi, Shunsuke, 2017. "Social welfare losses from groundwater over-extraction for small-scale agriculture in Sri Lanka: Environmental concern for land use," Journal of Forest Economics, Elsevier, vol. 29(PA), pages 47-55.
    2. Zachariah, Oswald & Rollins, Kimberly S., 1999. "Optimal Economic Management Of Groundwater Quantity And Quality: An Integrated Approach," 1999 Annual meeting, August 8-11, Nashville, TN 21501, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Supalla, Raymond J., 2004. "Irrigation Management Research Needs in an Era of Changing Water Use Priorities," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 5, pages 1-16, January.
    4. Erik Lichtenberg & Tony M. Penn, 2003. "Prevention versus Treatment under Precautionary Regulation: A Case Study of Groundwater Contamination under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 44-58.
    5. Wasantha Athukorala & Clevo Wilson, 2012. "Groundwater overuse and farm-level technical inefficiency: evidence from Sri Lanka," School of Economics and Finance Discussion Papers and Working Papers Series 279, School of Economics and Finance, Queensland University of Technology.
    6. Lescot, Jean-Marie & Bordenave, Paul & Leccia, Odile & Petit, Kevin, 2013. "Contrôle des pollutions diffuses par les pesticides. Une approche coût-efficacité spatialement distribuée," Économie rurale, French Society of Rural Economics (SFER Société Française d'Economie Rurale), vol. 333(January-F).

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