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Farm and community-level impacts of irrigation water supply reductions : a case study of Malheur County, Oregon

ScholarsArchive at Oregon State University

Field Value
Title Farm and community-level impacts of irrigation water supply reductions : a case study of Malheur County, Oregon
Names Wyse, Barbara J. (creator)
Adams, Richard M. (advisor)
Date Issued 2004-08-19 (iso8601)
Note Graduation date: 2005
Abstract Agricultural water supplies are becoming increasingly uncertain in the western
United States due to rising demand from competing water users, environmental
restrictions on surface water withdrawals due to water quality and endangered species
concerns, and, potentially, climate-induced hydrological changes. Since many rural areas
in the West depend economically upon irrigated agriculture, increased water supply
variability may not only affect the agricultural sector, but may also have significant
regional economic impacts.
This study investigates the distribution and magnitude of farm and community level
economic impacts of water supply fluctuations through a case study of an irrigation
district located in an agriculturally-dependent county in southeastern Oregon. In addition
to estimating the value of irrigation water, this study examines the effectiveness of three
strategies to mitigate the economic consequences of fluctuating water supplies: 1.
increased accuracy of water supply forecasts, 2. additional irrigation technology
adoption, and 3. implementation of a water market or water bank. Two models were utilized to estimate the economic impacts. First, a linear
programming model written in the General Algebraic Modeling System (GAMS) was
used to estimate the profit and revenue effects of four water supply scenarios on six
representative farm types. Second, results from the linear program were used to conduct
a regional impact analysis in an input-output model to ascertain how the farm revenue
effects impact community-level employment and income.
Results indicate that expected annual revenue losses due to water shortages under
current conditions range from 4 to 14%, while the expected annual profit losses range
from 9 to 12%. Expected annual farm profit losses on the large ranches, feedlot
operations, and row crop farms comprise 75% of total expected farm profit losses.
County-level employment and income losses due to water supply variations in this
irrigation district (comprising 16% of irrigated land in the county) were limited to less
than 1%, even in the most severe water shortage scenario. Results also suggest that of the
three mitigating strategies, additional irrigation technology adoption best reduces farm
and community-level economic losses. A doubling of the current levels of sprinkler and
drip irrigation technology resulted in a 5% increase in expected farm profits and a 0.1%
increase in expected county income. Although water trading and improved accuracy of
water forecasts similarly reduced farm profit losses due to water shortages, both resulted
in greater expected farm revenue losses and hence greater community-level economic
losses.
Genre Thesis/Dissertation
Topic Water-supply, Agricultural -- Economic aspects -- Oregon -- Malheur County
Identifier http://hdl.handle.net/1957/20026

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