18 research outputs found
Irrigation Restriction and Biomass Market Interactions: The Case of the Alluvial Aquifer
The U.S. Geological Survey has determined that irrigation in Arkansasâ Delta is unsustainable. This study examines how irrigation restrictions would affect county net returns to crop production. It also considers the effect of planting less water-intensive bioenergy cropsââŹâswitchgrass and forage sorghumââŹâin the event biofuel markets become a reality. Results suggest that sustainable irrigation restrictions without bioenergy crops would decrease producer returns by 28% in the region. Introducing these alternative crops would both reduce groundwater use and may restore state producer returns, albeit with significant spatial income redistribution to crop production throughout the state.biomass crops, ground water irrigation, spatial income redistribution, sustainability, Agribusiness, Agricultural and Food Policy, Crop Production/Industries, Environmental Economics and Policy, Financial Economics, Land Economics/Use, Political Economy, Resource /Energy Economics and Policy, Risk and Uncertainty, Q24, Q25, Q32, Q42, O13,
Impact of the Agricultural Sector on the Arkansas Economy in 2001
Agriculture has historically been one of Arkansasâ primary economic sectors. Agriculture is defined as the sum of agricultural production and processing activities unless otherwise specified. Agriculture contributes to the economy through direct agricultural production and value-added processing which generates economic activity in other parts of the economy
Going, Going, Almost Gone: How the Depletion of the Alluvial Aquifer Will Affect Cropping Decisions in the Arkansas Delta
The U.S. Geological Survey (USGS) has determined that agricultural irrigation in Arkansasâ Delta is unsustainable with significant negative economic repercussions on producers net returns affected by the Alluvial aquifer. This study examines how irrigation restrictions in that region would affect county net returns to crop production. It also considers the effect of planting less water-intensive bioenergy crops in the event biofuel markets become a reality. A constrained optimization model determines acreage allocations and net returns under three irrigation scenarios: i) no irrigation restrictions, ii) irrigation restrictions that lead to a sustainable Alluvial aquifer, and iii) irrigation restrictions that would lengthen the life of the Alluvial aquifer. Hypothetical switchgrass and forage sorghum crops were then added to model the effect of a biofuel market. If crop production were conducting using irrigation levels that are sustainable, as defined by the USGS, producer net returns would decrease by 28% in the Alluvial region. Estimates show that the introduction of dedicated bioenergy crops could alleviate this downturn. If the price of switchgrass reached $46.40 per dry ton at the farmgate, it is possible to restore net returns to crop production across the state to pre-irrigation restriction levels, while Alluvial region producers now would suffer only a 9.5% reduction. Significant income redistribution to crop production thus exists with depleting ground water irrigation resources even with the introduction of an alternative markets.ground water irrigation, sustainability, biomass crops, Crop Production/Industries, Farm Management, Resource /Energy Economics and Policy,
Impact of the Agricultural Sector on the Arkansas Economy
Agriculture historically has been one of the primary sectors of the Arkansas economy. Agriculture is defined as the sum of agricultural, forestry, and fisheries production and processing activities unless otherwise specified. Not only does agriculture contribute to the economy through direct agricultural production and added value processing, it also plays an important role through the economyâs other sectors. Utilizing data from the United States Bureau of Economic Affairs and the State of Arkansas, the economic impact of agriculture on the Arkansas economy was estimated for the latest year available, 1999. Gross State Product (GSP) information for Arkansas was compared with that of other states in the southeastern U.S. to give a measure of the relative importance of agriculture in Arkansas compared with other states. The total impact of agriculture (direct, indirect, and induced effects) on added value, employment, and wage income was estimated by employing the Impact Analysis for Planning System (IMPLAN). Economic impacts of agricultural production and processing were estimated for agriculture as a whole and also separately for the crop sector, the livestock sector, and the forestry sector
Going, Going, Almost Gone: How the Depletion of the Alluvial Aquifer Will Affect Cropping Decisions in the Arkansas Delta
The U.S. Geological Survey (USGS) has determined that agricultural irrigation in Arkansasâ Delta is unsustainable with significant negative economic repercussions on producers net returns affected by the Alluvial aquifer. This study examines how irrigation restrictions in that region would affect county net returns to crop production. It also considers the effect of planting less water-intensive bioenergy crops in the event biofuel markets become a reality.
A constrained optimization model determines acreage allocations and net returns under three irrigation scenarios: i) no irrigation restrictions, ii) irrigation restrictions that lead to a sustainable Alluvial aquifer, and iii) irrigation restrictions that would lengthen the life of the Alluvial aquifer. Hypothetical switchgrass and forage sorghum crops were then added to model the effect of a biofuel market.
If crop production were conducting using irrigation levels that are sustainable, as defined by the USGS, producer net returns would decrease by 28% in the Alluvial region. Estimates show that the introduction of dedicated bioenergy crops could alleviate this downturn. If the price of switchgrass reached $46.40 per dry ton at the farmgate, it is possible to restore net returns to crop production across the state to pre-irrigation restriction levels, while Alluvial region producers now would suffer only a 9.5% reduction. Significant income redistribution to crop production thus exists with depleting ground water irrigation resources even with the introduction of an alternative markets
Expected Changes in Farm Landscape with the Introduction of a Biomass Market
This study examines how the introduction of dedicated energy cropsâswitchgrass
and forage sorghumâmay affect Arkansasâ crop allocation decisions. The study captures crop
production practices at the county or crop reporting district level. Results are in a static
equilibrium framework and limited to a one-year ahead forecast. The modelâs predictive success
was evaluated by comparing 2007 model results with no energy crop production to actual
acreages harvested. Switchgrass entered land use at approximately 35/dry ton in 2007
and 2008, respectively. Higher 2008 commodity prices for traditional crops caused lower
switchgrass acreage peaks compared to 2007. Further, at higher biomass price levelsâ55/dry ton depending on year and whether or not land charges were appliedâthe annual energy
crop, forage sorghum, surpassed switchgrass acreage primarily as a result of its higher yield.
Since acreage supply response is quite elastic, biorefineries will be exposed to significant price
risk, especially at higher biomass prices, when the annual energy crop exceeds perennial
switchgrass in acreage. Finally, the study examined impacts of biomass production on resource
use. Regardless of ownership scenario, in 2007 and 2008, a 13 and 10 percent reduction,
respectively, in irrigation water per acre occurred when the price of switchgrass increases from
65. Labor and fuel use showed no such trends. This is a significant finding, given
diminishing water resources for a large portion of the Arkansas crop producing region
Irrigation Restriction and Biomass Market Interactions: The Case of the Alluvial Aquifer
The U.S. Geological Survey has determined that irrigation in Arkansasâ Delta is unsustainable. This study examines how irrigation restrictions would affect county net returns to crop
production. It also considers the effect of planting less water-intensive bioenergy
cropsâswitchgrass and forage sorghumâin the event biofuel markets become a reality.
Results suggest that sustainable irrigation restrictions without bioenergy crops would decrease
producer returns by 28% in the region. Introducing these alternative crops would both
reduce groundwater use and may restore state producer returns, albeit with significant spatial
income redistribution to crop production throughout the state
Expected Changes in Farm Landscape with the Introduction of a Biomass Market
This study examines how the introduction of dedicated energy cropsâswitchgrass and forage sorghumâmay affect Arkansasâ crop allocation decisions. The study captures crop production practices at the county or crop reporting district level. Results are in a static equilibrium framework and limited to a one-year ahead forecast. The modelâs predictive success was evaluated by comparing 2007 model results with no energy crop production to actual acreages harvested. Switchgrass entered land use at approximately 35/dry ton in 2007 and 2008, respectively. Higher 2008 commodity prices for traditional crops caused lower switchgrass acreage peaks compared to 2007. Further, at higher biomass price levelsâ55/dry ton depending on year and whether or not land charges were appliedâthe annual energy crop, forage sorghum, surpassed switchgrass acreage primarily as a result of its higher yield. Since acreage supply response is quite elastic, biorefineries will be exposed to significant price risk, especially at higher biomass prices, when the annual energy crop exceeds perennial switchgrass in acreage. Finally, the study examined impacts of biomass production on resource use. Regardless of ownership scenario, in 2007 and 2008, a 13 and 10 percent reduction, respectively, in irrigation water per acre occurred when the price of switchgrass increases from 65. Labor and fuel use showed no such trends. This is a significant finding, given diminishing water resources for a large portion of the Arkansas crop producing region.Land Economics/Use, Resource /Energy Economics and Policy,