ESTIMATED ECONOMIC IMPACT FROM ADOPTION OF WATER-RELATED AGRICULTURAL TECHNOLOGY

This study estimates the expected benefits from adoption of new water-related technologies for the Texas High Plains, a region which is currently mining groundwater. Adoption rates for two improved irrigation systems and limited tillage practices are assumed, and changes in net returns, resource usage, and irrigated acres are examined as measures of adoption benefits. A recursive linear programming framework covering a 40-year period is employed, with results indicating that, contrary to what one might hope, adoption will not significantly lengthen the life of the aquifer. Annual water use changes very little with adoption, while irrigated acreages increase slightly. Adoption does provide a substantial increase in annual net returns, with discounted net returns increasing by 28 percent over those estimated for continued use of conventional technology.