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The Impact of Irrigation Restrictions on Cropland Values in Nebraska

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  • Savage, Jeff
  • Ifft, Jennifer

Abstract

Irrigation restrictions play an important role in allocating water in Nebraska, but the costs of these water management institutions are difficult to measure. This study takes advantage of temporal and spatial variation in water management policies across Nebraska, as well as plot level data that incorporates information on cropland values, irrigation status, and physical characteristics to measure the impact of irrigation restrictions on cropland values. Using a hedonic model with field-level fixed effects, we find that irrigation moratoria decreased the value of affected cropland in recent years when higher commodity prices increased the relative profitability of irrigation relative to dryland.

Suggested Citation

  • Savage, Jeff & Ifft, Jennifer, 2015. "The Impact of Irrigation Restrictions on Cropland Values in Nebraska," Working Papers 250021, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:250021
    DOI: 10.22004/ag.econ.250021
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    Cited by:

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    2. Callahan, Scott & Ifft, Jennifer & Michaud, Clayton P., 2022. "The impact of countercyclical farm programs on agricultural land values," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322579, Agricultural and Applied Economics Association.
    3. Eric C. Edwards & Todd Guilfoos, 2021. "The Economics of Groundwater Governance Institutions across the Globe," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1571-1594, December.
    4. Sampson, Gabriel S. & Hendricks, Nathan P. & Taylor, Mykel R., 2019. "Land market valuation of groundwater," Resource and Energy Economics, Elsevier, vol. 58(C).
    5. Ellen M. Bruno & Nick Hagerty & Arthur R. Wardle, 2022. "The Political Economy of Groundwater Management: Descriptive Evidence from California," NBER Chapters, in: American Agriculture, Water Resources, and Climate Change, pages 343-365, National Bureau of Economic Research, Inc.
    6. Filippelli, Steven K. & Sloggy, Matthew R. & Vogeler, Jody C. & Manning, Dale T. & Goemans, Christopher & Senay, Gabriel B., 2022. "Remote sensing of field-scale irrigation withdrawals in the central Ogallala aquifer region," Agricultural Water Management, Elsevier, vol. 271(C).

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    Keywords

    Environmental Economics and Policy; Land Economics/Use; Resource /Energy Economics and Policy;
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