Irrigation Management Research Needs in an Era of Changing Water Use Priorities

With growing competition for water, increased environmental constraints and a weak economic picture for agriculture, there has been growing concern about the future of the irrigation industry in both the western United States and the prairie provinces of Canada. In this paper I argue that irrigation research is a major reason the industry has successfully weathered troubled times in the past and that a properly focused research program can also be very helpful in addressing future challenges. I further argue, however, that the research programs in both the United States and Canada must be refocused if we are to effectively and efficiently meet these challenges.Resource /Energy Economics and Policy,

SLIDES: An Update on Management of the Northern Ogallala

Presenter: Raymond Supalla, Department of Agricultural Economics, University of Nebraska. 37 slides

WELFARE DIFFERENCES BETWEEN GROSS WATER PUMPED AND CONSUMPTIVE USE AS ALTERNATIVE POLICY CONTROL VARIABLES TO MEET AQUIFER MANAGEMENT OBJECTIVES

The welfare cost of using gross water pumped instead of consumptive use as a control variable to meet consumptive use goal was estimated for Southwestern Nebraska. The results show that the widespread use of gross water as a policy control variable substantially overstates the welfare cost of reducing consumptive use.Resource /Energy Economics and Policy,

Biofuels: An Emerging Hazard for Water Resources

Biofuels, especially ethanol, have emerged as the most recent threat to sustainable water resources management. Although there is some concern about the direct effect of ethanol production on water demand, this effect is small compared to the expected indirect impact on irrigation demand

Potential Cost of Agricultural Water for Meeting In-stream Flow Demands

In 1997 the states of Colorado, Nebraska and Wyoming signed a Cooperative Agreement (CA) which called for making 130,000 to 150,000 acre feet of additional water available for meeting endangered species needs along the Big Bend Reach of the Platte River. Three projects, one in each state, will contribute 70,000 acre feet towards this goal. The remaining 60,000 to 80,000 acre feet must be acquired thorough other means, the most likely being the purchase or leasing of rights to what is now irrigation water. If the CA is eventually implemented, all purchases and leases of irrigation water will be negotiated on a willing buyer and willing seller basis. The cost of the endangered species water will be shared by the three states and the federal government. Those interested in buying endangered species water are concerned about what it might cost, and those interested in selling are interested in potential profits

If Irrigation Needs to be Reduced, How Should We Do It?

Nebraska’s obligations under the terms of the Republican Basin Compact and the Cooperative Agreement for the Platte River, as well as our continuing commitment to future generations, require reductions in the consumptive use of water in irrigation. Reducing irrigation in a cost effective and equitable way is perhaps the most important water policy challenge which Nebraska must address. Determining how to meet this challenge involves the following questions: how will irrigators be affected by irrigation reduction programs such as allocation or forced reductions in irrigated acres; how will the Nebraska economy and local communities be affected; what is the least cost method of reducing irrigation consumptive use (CU), and; who should bear the cost of irrigation reduction programs: irrigators, Natural Resources Districts (NRD’s) or the State of Nebraska? This article summarizes what we now know about these questions. Although the numbers cited are a constantly moving target as crop prices, grain yields and input prices change, the related policy conclusions are not likely to change much over time

Cost of Augmenting Stream Flow Through Reduced Groundwater Pumping

There is currently considerable speculation and concern over the possibility of using reduced groundwater pumping to augment stream flow. This option has been raised as a possibility for helping Nebraska meet its compact obligations on the Republican River and as a means of providing part of the instream flow needs in the Big Bend reach of the Platte. The merits of this option depend on hydrology, value judgements regarding property rights and entitlements and on the economic cost of reduced pumping. This paper addresses only the question of economic cost

Ground Water Mining and Western Water Rights Law: the Nebraska Experience

This 1979 South Dakota Law Review articles reviews early natural resource district regulations under the Nebraska Ground Water Management Act

Nebraska Farm Real Estate Market Developments 2003-2004

Nebraska’s agricultural land values moved sharply upward across the state during 2003 and into 2004, recording an average gain of 9.2 percent for the 12 months ending February 1, 2004. This average increase was the largest annual percentage gain in 14 years. And it followed on several years of fairly stable land values. Virtually all land classes showed gains, and in all areas of the state–even in areas of serious multi-year drought, where previous-year value declines had occurred. The highest-priced land in the state is now center pivot irrigated cropland in Eastern Nebraska as the market preference for this irrigated land over gravity irrigated land has risen over the past five years. The impact of drought has been present in agricultural land markets; but those impacts have been mixed in nature depending upon unique conditions of the particular region. The value of land with irrigation potential has increased most rapidly in recent years in the eastern regions, while western areas of the state with more limited water availability have not seen values rise as much. In some localities, water policy restrictions or further irrigation development, either existing or pending, has altered demand for this type of land. Other forces impacting the current market center on low interest rates and widespread demand by nonfarmer buyers. While active farmers continue to be the major buyer group, typically buying for farm expansion purposes, their dominance in local markets across the state has fallen over the past decade. Despite agricultural land transfers typically involving considerable dollar values, nearly half of the transfers in 2003 were cash purchases involving no debt financing. Survey reporters frequently commented on the presence of 1031 tax exchanges in agricultural land transfers which may explain part of the relatively high incidence of cash purchases. Given more favorable commodity price levels as well as continued strong demand for rental land in most local land markets, 2004 cash rental rates were up from previous-year levels, frequently 5 percent or more for most cropland classes. Pasture rental rates for 2004 were also higher, both on a per acre and an animal unit per month basis. According to survey reporters, we are seeing a continuation of a slow multi-year decline of expected annual net rates of returns to the various agricultural land classes. Apparently, market participants are generally willing to bid values upward somewhat faster than their expectations for increases in annual net rates of return. In the vernacular of the stock market, this is akin to a rising price/earnings ratio