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Economics of Alternative Crop Production in Arid Regions

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Author Info

  • Curtis, Kynda R.
  • Bishop, Carol
  • Harris, Thomas R.

Abstract

As water resources in arid regions decline, agricultural producers are encouraged to adopt water conserving strategies. The implementation of alternative low-water use crops is one option, but is it economically feasible? Data on current and alternative crops for this study include enterprise budgets, producer interviews, and field trials in Northwestern Nevada, USA. We use WinEPIC, a Windows-based version of the EPIC model, which synthesizes both agronomics and economics, to model yields and returns of alternative crop production under differing irrigation levels. Risk analysis or the distribution of net returns to alternative crop production is also examined. This study determined that there are alternative crops that could be feasibly substituted for alfalfa and reduce water use by at least one-half while providing net returns that meet or exceed returns from alfalfa and keep producers profitable in agriculture

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Bibliographic Info

Paper provided by Australian Agricultural and Resource Economics Society in its series 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia with number 48053.

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Date of creation: 2009
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Handle: RePEc:ags:aare09:48053

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Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
Phone: 0409 032 338
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Web page: http://www4.agr.gc.ca
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Related research

Keywords: alternative crops; arid regions; economic feasibility; irrigation; WinEPIC;

This paper has been announced in the following NEP Reports:

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  1. Bontemps, Christophe & Couture, Stephane, 1999. "Dynamics And Uncertainty In Environmental And Natural Resource Management Under Scarcity: The Case Of Irrigation," 1999 Annual meeting, August 8-11, Nashville, TN 21504, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Uwe Schneider & Bruce McCarl, 2003. "Economic Potential of Biomass Based Fuels for Greenhouse Gas Emission Mitigation," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(4), pages 291-312, April.
  3. Richardson, James W. & Gray, Allan W., 2002. "AAEA Post Conference Workshop on Simulation for Risk Analysis," 2002 Annual meeting, July 28-31, Long Beach, CA 19737, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Vincent Martinet & Luc Doyen, 2007. "Sustainability of an economy with an exhaustible resource: A viable control approach," Working Papers 22177, Institut National de la Recherche Agronomique, France.
  5. Archer, David W. & Kludze, Hillarius, 2006. "Transition to Organic Cropping Systems under Risk," 2006 Annual meeting, July 23-26, Long Beach, CA 21278, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Wicks, Santhi & Howitt, Richard E. & Klonsky, Karen, 2006. "A Dynamic Analysis Of Sustainable Farming Systems In California Agriculture," 2006 Annual meeting, July 23-26, Long Beach, CA 21444, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  7. Calatrava-Requena, Javier & Garrido, Alberto, 2003. "The Effects Of Spot Water Markets On The Economic Risk Derived From Variable Water Supply," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25885, International Association of Agricultural Economists.
  8. Wilson, Paul N. & Needham, Robert A., 2006. "Groundwater Conservation Policy in Agriculture," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25296, International Association of Agricultural Economists.
  9. Gandonou, Jean-Marc & Dillon, Carl R. & Harman, Wyatte L. & Williams, Jimmy R., 2004. "Precision Farming As A Tool In Reducing Environmental Damages In Developing Countries: A Case Study Of Cotton Production In Benin," 2004 Annual meeting, August 1-4, Denver, CO 20086, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. Turner, Brenda & Perry, Gregory M., 1997. "Agriculture To Instream Water Transfers Under Uncertain Water Availability: A Case Study Of The Deschutes River, Oregon," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(02), December.
  11. Richardson, James W. & Herbst, Brian K. & Outlaw, Joe L. & Gill, Robert Chope, II, 2007. "Including Risk in Economic Feasibility Analyses: The Case of Ethanol Production in Texas," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 25(2).
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