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Irrigation Restriction and Biomass Market Interactions: The Case of the Alluvial Aquifer

Published online by Cambridge University Press:  26 January 2015

Michael Popp
Affiliation:
Department of Agricultural Economics and Agribusiness, University of Arkansas, Fayetteville, AR
Lanier Nalley
Affiliation:
Department of Agricultural Economics and Agribusiness, University of Arkansas, Fayetteville, AR
Gina Vickery
Affiliation:
Department of Agricultural Economics and Agribusiness, University of Arkansas, Fayetteville, AR
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Abstract

The U.S. Geological Survey has determined that irrigation in Arkansas' 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 crops—switchgrass and forage sorghum—in 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.

Type
Research Article
Copyright
Copyright © Southern Agricultural Economics Association 2010

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