New study highlights variability of water values for crop production in the central High Plains

Farmers use irrigation to reduce the impacts of drought and to maintain their crop yields despite variability in weather. Understanding the monetary value of irrigation water helps to inform farmers and policymakers about potential impacts of water shortages. It also highlights the importance of a reliable water supply in supporting agricultural land values.

A new study co-authored by DWFI Postdoctoral Research Associate Renata Rimsaite, Corteva Agriscience Data Scientist Justin Gibson, and DWFI Director of Policy Nick Brozović introduces a framework for understanding the economic value of water used in agricultural production. In their paper, the three authors apply the framework to corn production in the central High Plains region of the United States.

“We used corn revenue corresponding to both irrigated and non-irrigated yields and adjusted for irrigation requirements in different geographies. Our results show that in areas where rainfall is the main source of water for crops, irrigation can still provide significant economic value to agricultural producers,” said Gibson. Gibson is also a past postdoctoral researcher with DWFI.

The findings suggest that the per unit value of irrigation water is highest not during severe droughts and not in more arid areas of the study region, but rather when and where irrigation can make the largest improvements to average crop productivity.

“Policymakers can use these results to reduce the impacts of future droughts on agriculture, especially where climate change leads to increases in irrigation needs,” said Rimsaite.

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