Economic impacts of short-term water transfer programs - the Palo Verde land fallowing program case study
Date
1996-12
Authors
Davisson, Gerald M., author
Kamand, Fadi Z., author
U.S. Committee on Irrigation and Drainage, publisher
Journal Title
Journal ISSN
Volume Title
Abstract
The Metropolitan Water District of Southern California (Metropolitan) and the Palo Verde Irrigation District implemented a two-year test land fallowing program (Program) from August 1, 1992 through July 31, 1994. Under the Program, 20,215 acres of agricultural farmland in the Palo Verde Valley were fallowed. The saved water, approximately 186,000 acre-feet, was stored in Lake Mead by the United States for use by Metropolitan prior to the year 2000. Metropolitan compensated participating farmers $620 per fallowed acre per year which equated to $135 per acre-foot of water saved. Four surveys were conducted in the Palo Verde Valley during and after the Program to evaluate the economic impacts of the Program on the participating farmers and the community as a whole. Results showed that the Program was well received by the farmers and various community representatives, and that the Program contributed to a slight reduction in the average regional employment, approximately 1.3 percent. Participating farmers reportedly spent 93 percent of Program payments in excess off allowing and maintenance costs on farm-related investments, purchases, and debt repayment. Although this Program had relatively small economic impacts, nevertheless it is a difficult task to quantify the positive and negative impacts of water transfer programs. Further details relating to the Program, third party impacts, and the regional economic impacts of the Program are presented.
Description
Presented at Competing interests in water resources - searching for consensus: proceedings from the USCID water management conference held on December 5-7, 1996 in Las Vegas, Nevada.