Economic Aspects of the Yuma Case Study

Western agriculture may be divided into two groups.  The first is a relatively small group of large-scale producers who account for the bulk of agricultural production and irrigation water use. These producers tend to be relatively profitable, have agriculture as their main source of household income, make more investments to improve irrigation efficiency, and make greater use of scientific methods for irrigation management. The second is a very large group of small-scale producers that rely more on off-farm income for overall household income, are less profitable, and are less likely to make investments to improve irrigation efficiency, or adopt improved information technologies for water management.  Although this second group accounts for a relatively smaller share of agricultural water use, they account for a significant share of water use, relative to urban demand, for example. This dualism means that looking at "average values" of agricultural production, water use, or irrigation technology adoption will provide a highly misleading picture of the potential effects of changes in agricultural water policy.  These two groups will respond very differently, with very different outcomes, to changes in policies and water availability.  

George Frisvold is an extension specialist and professor of agricultural and resource economics at the University of Arizona. He received his undergraduate and doctoral degrees from the University of California, Berkeley and has been a visiting scholar at India’s National Institute of Rural Development, a lecturer at Johns Hopkins University, and Chief of the Resource Policy Branch of USDA's Economic Research Service. From 1995 to 1996, Dr. Frisvold served as a Senior Economist for the President's Council of Economic Advisers responsible for agricultural, natural resource, and international trade issues. He is currently an associate editor of the journal Water Economics and Policy.

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