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Water Use Efficiency at the Farm and Regional Level: The Economics of Response and the Furphy of Excellence

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  • Gyles, Oliver

Abstract

An allowance for water use is part of the agronomic analysis implicit in the foundation of any sensible economic evaluation of crop response or change of farming system. Diminishing returns to investment in water use efficiency imply that the optimum level of investment is determined by the price of the commodity and the cost of increasing efficiency. Given a market for water, the relevant price will be that of the least valuable commodity produced at the margin of regional resources. Until water becomes liquid gold, the farm optimum will be well short of the experimental maximum. Some farm and regional possibilities for investing in increased WUE are discussed.

Suggested Citation

  • Gyles, Oliver, 2001. "Water Use Efficiency at the Farm and Regional Level: The Economics of Response and the Furphy of Excellence," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125647, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare01:125647
    DOI: 10.22004/ag.econ.125647
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    References listed on IDEAS

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    1. Gyles, Oliver & Young, Michael E.S., 1993. "Evaluation of Tile Drainage of Irrigated Land: Marginalia and Sustainability," 1993 Conference (37th), February 9-11, 1993, Sydney, Australia 147636, Australian Agricultural and Resource Economics Society.
    2. Marsh, Sally P. & Pannell, David J., 2000. "Agricultural extension policy in Australia: the good, the bad, and the misguided," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(4), pages 1-23.
    3. Gyles, Oliver & Baird, Catherine A. & Brown, Stuart, 1999. "Economics of Reduced Water Allocations: Estimating Impacts on the Northern Victorian Dairy Industry," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123810, Australian Agricultural and Resource Economics Society.
    4. Ferris, Alexandria & Malcolm, Bill, 1999. "Sense and Nonsense in Dairy Farm Management Economic Analysis," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123803, Australian Agricultural and Resource Economics Society.
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