Effects of Climate Change on Water Resources

Environmental Economics and Policy, Resource /Energy Economics and Policy, Q25, Q54,

DROUGHT AND CLIMATE CHANGE: IMPLICATIONS FOR THE WEST

Environmental Economics and Policy,

The persistence of drought impacts across growing seasons: a dynamic stochastic analysis

Agricultural producers throughout much of the United States experienced one of the most severe droughts in the last 100 years during the years 1999-2006. The prolonged nature of this drought highlights a need to better understand the impacts and management of drought across growing seasons, rather than just within a growing season. Producers express specific concern about the tendency of drought impacts to persist even after drought itself has subsided. The persistence of drought impacts has received limited attention in the economics literature. The objectives of this study are two-fold: 1) to determine whether inter-year dynamics, in the form of agronomic constraints and financial flows, can cause persistence of a drought's impact in years subsequent to the drought, and 2) to determine whether the impact of one year of drought can alter the impact of a subsequent year of drought. A multi-year, dynamic and stochastic decision model is developed in a discrete stochastic programming framework and solved to address the objectives. The structure and parameters of the farm-level model are based on irrigated row crop farms in eastern Oregon, USA. Analysis of the model's solution reveals the following results: 1) the impact of a drought can persist long after the drought subsides, and 2) the impact of one year of drought can alter the impact of a subsequent year of drought. Potential implications for the administration of drought-related assistance are discussed briefly.Drought, preparedness, response, uncertainty, dynamics, discrete stochastic programming, agriculture, irrigation, eastern Oregon, row crops, crop rotation, Crop Production/Industries, Risk and Uncertainty,

A Case Study of Fall versus Spring Calving for the Rocky Mountain West

Feeder cattle prices are generally lower in the fall, when the volume of calves for sale is highest. Most ranches in the Rocky Mountains calve in March or April, which results in the sale of weaned calves in October, when feeder cattle prices tend to be lowest. This study was initiated with the idea that a rancher might improve profitability by switching to fall calving, which would enable them to sell calves in April at a higher price. In this study, fall calving generated both higher and less variable profit, but mainly because of cost savings.Livestock Production/Industries,

Economics of drought preparedness and response in irrigated agriculture

The impact of recent severe droughts throughout the United States, the potential for climate change to intensify the frequency and severity of drought, and discussion about the future of government assistance in agriculture highlight the need for a transition from drought as ‘disaster’ to drought as ‘managed risk’. However, guidance for agricultural producers about optimal drought preparedness and response is insufficient. It is particularly unclear what optimal drought preparedness and response should look like, in practice, for farm systems with uncertain water supplies and intra- and inter-year dynamics. A mathematical programming model that captures the stochastic and dynamic aspects of an irrigated row crop farm is developed and used to explore the nature of optimal drought preparedness and response. Results indicate several important characteristics. First, drought has the potential to generate heterogeneous impacts, even across a set of homogeneous farms. Second, a farm system with inter-year dynamics can continue to experience the effects of drought after the drought itself subsides; additionally, the effects of drought in one year can intensify the impact of drought in subsequent years. Third, in the presence of discount and interest rates, crop diversification does not maximize expected profit, even though it is often considered a drought management tool. Fourth, the primary effect of water supply uncertainty is the abandonment of more fall-prepared fields. Hence, the multi-peril crop insurance program’s prevented planting provision is identified as an optimal drought preparedness tool, even if unsubsidized. Finally, the predicted effects of climate change for snowmelt-dependent farm systems require distinctly different forms of adaptation, and cause profit losses of different magnitudes. Because the model captures both intra- and inter-year dynamics, it provides 1) a more thorough understanding of the complex tradeoffs that producers face when preparing for and responding to drought, 2) a more complete picture of the dynamic impacts of drought, and 3) important insights about the administration of drought assistance programs. Lastly, it elucidates the meaning of optimal drought preparedness; a notion that has received increased attention in the policy arena, but whose practical form has been only vaguely alluded to

OPPORTUNITY COSTS OF WATER LEASING: IRRIGATION, INSTREAM FLOW, AND WETLAND CONSIDERATIONS IN THE LARAMIE BASIN, WYOMING

Flood irrigation in the Laramie Basin of southeast Wyoming has created many wetlands that rely directly on irrigation inputs for water. The Laramie Basin is a proposed water source for enhancing Platte River instream flows, to the benefit of endangered cranes, terns, plovers, and sturgeons. Increasing irrigation efficiency, or retiring irrigated lands would transform Laramie Basin agriculture and cause a high fraction of the Basins wetlands to be lost. This study explores the limitations of traditional water transfer tools when regional instream-flow requirements compete for water with local irrigation-dependent wetlands. A rotating short-term water lease program is proposed. The program would allow Laramie Basin producers to contribute to instream flow without causing permanent wetland damage or loss. Short-term water leasing programs could allow agricultural communities to contribute to regional environmental water needs without sacrificing local, agriculturally-based ecological resources. An estimate of minimum water costs, advantages and disadvantages of short-term water leasing are discussed.Resource /Energy Economics and Policy,

How to Talk With Ranchers About Drought and Climate Resilience: Lessons From Knowledge Exchange Workshops in Montana

This article offers the Extension community a pathway to drought resilience and climate-related conversations through knowledge exchange workshops. In 2017, a flash drought affected eastern Montana, and ranchers in the region faced numerous challenges. Moreover, drought-favorable climate conditions are predicted to increase for the region. We held five workshops to facilitate an exchange of adaptive drought management strategies, focusing on key themes for drought resilience: (a) drought planning and adaptive management, (b) use of local knowledge networks, (c) flexible stocking and grazing, and (d) adaptation to shifting baselines. Extension can use this approach to foster multidirectional knowledge sharing to strengthen ranching resilience to drought conditions

cont_base.gms

The impact of recent severe droughts throughout the United States, the potential for climate change to intensify the frequency and severity of drought, and discussion about the future of government assistance in agriculture highlight the need for a transition from drought as ‘disaster’ to drought as ‘managed risk’. However, guidance for agricultural producers about optimal drought preparedness and response is insufficient. It is particularly unclear what optimal drought preparedness and response should look like, in practice, for farm systems with uncertain water supplies and intra- and inter-year dynamics. A mathematical programming model that captures the stochastic and dynamic aspects of an irrigated row crop farm is developed and used to explore the nature of optimal drought preparedness and response. Results indicate several important characteristics. First, drought has the potential to generate heterogeneous impacts, even across a set of homogeneous farms. Second, a farm system with inter-year dynamics can continue to experience the effects of drought after the drought itself subsides; additionally, the effects of drought in one year can intensify the impact of drought in subsequent years. Third, in the presence of discount and interest rates, crop diversification does not maximize expected profit, even though it is often considered a drought management tool. Fourth, the primary effect of water supply uncertainty is the abandonment of more fall-prepared fields. Hence, the multi-peril crop insurance program’s prevented planting provision is identified as an optimal drought preparedness tool, even if unsubsidized. Finally, the predicted effects of climate change for snowmelt-dependent farm systems require distinctly different forms of adaptation, and cause profit losses of different magnitudes. Because the model captures both intra- and inter-year dynamics, it provides 1) a more thorough understanding of the complex tradeoffs that producers face when preparing for and responding to drought, 2) a more complete picture of the dynamic impacts of drought, and 3) important insights about the administration of drought assistance programs. Lastly, it elucidates the meaning of optimal drought preparedness; a notion that has received increased attention in the policy arena, but whose practical form has been only vaguely alluded to

cont_base.xls

The impact of recent severe droughts throughout the United States, the potential for climate change to intensify the frequency and severity of drought, and discussion about the future of government assistance in agriculture highlight the need for a transition from drought as ‘disaster’ to drought as ‘managed risk’. However, guidance for agricultural producers about optimal drought preparedness and response is insufficient. It is particularly unclear what optimal drought preparedness and response should look like, in practice, for farm systems with uncertain water supplies and intra- and inter-year dynamics. A mathematical programming model that captures the stochastic and dynamic aspects of an irrigated row crop farm is developed and used to explore the nature of optimal drought preparedness and response. Results indicate several important characteristics. First, drought has the potential to generate heterogeneous impacts, even across a set of homogeneous farms. Second, a farm system with inter-year dynamics can continue to experience the effects of drought after the drought itself subsides; additionally, the effects of drought in one year can intensify the impact of drought in subsequent years. Third, in the presence of discount and interest rates, crop diversification does not maximize expected profit, even though it is often considered a drought management tool. Fourth, the primary effect of water supply uncertainty is the abandonment of more fall-prepared fields. Hence, the multi-peril crop insurance program’s prevented planting provision is identified as an optimal drought preparedness tool, even if unsubsidized. Finally, the predicted effects of climate change for snowmelt-dependent farm systems require distinctly different forms of adaptation, and cause profit losses of different magnitudes. Because the model captures both intra- and inter-year dynamics, it provides 1) a more thorough understanding of the complex tradeoffs that producers face when preparing for and responding to drought, 2) a more complete picture of the dynamic impacts of drought, and 3) important insights about the administration of drought assistance programs. Lastly, it elucidates the meaning of optimal drought preparedness; a notion that has received increased attention in the policy arena, but whose practical form has been only vaguely alluded to