[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/273446.html
   My bibliography  Save this article

The Impact of Irrigation Restrictions on Cropland Values in Nebraska

Author

Listed:
  • Ifft, Jennifer
  • Bigelow, Daniel P.
  • Savage, Jeffrey
Abstract
Given the expansive water consumption of the agricultural sector in the western United States, irrigation practices have increasingly been restricted as a way to combat water scarcity. Using segment-level panel data on land values and irrigation status, we measure the extent to which irrigation restrictions are capitalized into irrigated and nonirrigated cropland values in Nebraska. On average, irrigation restrictions did not have a measurable impact on farmland values across 1999–2012. However, our results show that the effects of the restrictions vary considerably over time and that basins that were more dependent on irrigation were disproportionately impacted by the restrictions.

Suggested Citation

  • Ifft, Jennifer & Bigelow, Daniel P. & Savage, Jeffrey, 2018. "The Impact of Irrigation Restrictions on Cropland Values in Nebraska," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(2), May.
    • Handle: RePEc:ags:jlaare:273446
    DOI: 10.22004/ag.econ.273446
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/273446/files/JARE%2C43.2%2CMay2018%2C%233%2CIfft%20w_%20Supplement%2C195-214.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.273446?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kuminoff, Nicolai V. & Parmeter, Christopher F. & Pope, Jaren C., 2010. "Which hedonic models can we trust to recover the marginal willingness to pay for environmental amenities?," Journal of Environmental Economics and Management, Elsevier, vol. 60(3), pages 145-160, November.
    2. Ragan A. Petrie & Laura O. Taylor, 2007. "Estimating the Value of Water Use Permits: A Hedonic Approach Applied to Farmland in the Southeastern United States," Land Economics, University of Wisconsin Press, vol. 83(3), pages 302-318.
    3. Allison Borchers & Jennifer Ifft & Todd Kuethe, 2014. "Linking the Price of Agricultural Land to Use Values and Amenities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(5), pages 1307-1320.
    4. L. Allen Torell & James D. Libbin & Michael D. Miller, 1990. "The Market Value of Water in the Ogallala Aquifer," Land Economics, University of Wisconsin Press, vol. 66(2), pages 163-175.
    5. Palazzo, Amanda & Brozović, Nicholas, 2014. "The role of groundwater trading in spatial water management," Agricultural Water Management, Elsevier, vol. 145(C), pages 50-60.
    6. Peterson, Jeffrey M. & Marsh, Thomas L. & Williams, Jeffery R., 2003. "Conserving the Ogallala Aquifer: Efficiency, Equity, and Moral Motives," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 18(1), pages 1-4.
    7. Wendong Zhang & Cynthia J. Nickerson, 2015. "Housing Market Bust and Farmland Values: Identifying the Changing Influence of Proximity to Urban Centers," Land Economics, University of Wisconsin Press, vol. 91(4), pages 605-626.
    8. Javier Calatrava & Alberto Garrido, 2005. "Modelling water markets under uncertain water supply," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(2), pages 119-142, June.
    9. Kennedy, Peter E, 1981. "Estimation with Correctly Interpreted Dummy Variables in Semilogarithmic Equations [The Interpretation of Dummy Variables in Semilogarithmic Equations]," American Economic Review, American Economic Association, vol. 71(4), pages 801-801, September.
    10. Gary Solon & Steven J. Haider & Jeffrey M. Wooldridge, 2015. "What Are We Weighting For?," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 301-316.
    11. Steven Buck & Maximilian Auffhammer & David Sunding, 2014. "Land Markets and the Value of Water: Hedonic Analysis Using Repeat Sales of Farmland," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(4), pages 953-969.
    12. Richard Hornbeck & Pinar Keskin, 2014. "The Historically Evolving Impact of the Ogallala Aquifer: Agricultural Adaptation to Groundwater and Drought," American Economic Journal: Applied Economics, American Economic Association, vol. 6(1), pages 190-219, January.
    13. Sherrick, Bruce, 2012. "Farmland Turnover in Illinois," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 2, November.
    14. Raymond B. Palmquist, 1989. "Land as a Differentiated Factor of Production: A Hedonic Model and Its Implications for Welfare Measurement," Land Economics, University of Wisconsin Press, vol. 65(1), pages 23-28.
    15. Charles Regnacq & Ariel Dinar & Ellen Hanak, 2016. "The Gravity of Water: Water Trade Frictions in California," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1273-1294.
    16. Hendricks, Nathan P. & Peterson, Jeffrey M., 2012. "Fixed Effects Estimation of the Intensive and Extensive Margins of Irrigation Water Demand," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), pages 1-19, April.
    17. John Faux & Gregory M. Perry, 1999. "Estimating Irrigation Water Value Using Hedonic Price Analysis: A Case Study in Malheur County, Oregon," Land Economics, University of Wisconsin Press, vol. 75(3), pages 440-452.
    18. Brozovic, Nicholas & Islam, Shahnila, 2010. "Estimating the Value of Groundwater in Irrigation," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61337, Agricultural and Applied Economics Association.
    19. Shultz, Steven, 2010. "Hedonic Price Modeling to Value Irrigated Agriculture Across a River Basin," Western Economics Forum, Western Agricultural Economics Association, vol. 9(2), pages 1-14.
    20. Christopher Zakrzewicz & B. Wade Brorsen & Brian C. Briggeman, 2012. "Comparison of alternative sources of farmland values," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 72(1), pages 68-86, May.
    21. Cropper, Maureen L & Deck, Leland B & McConnell, Kenneth E, 1988. "On the Choice of Functional Form for Hedonic Price Functions," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 668-675, November.
    22. Jennifer Ifft & Todd Kuethe & Mitch Morehart, 2015. "The impact of decoupled payments on U.S. cropland values," Agricultural Economics, International Association of Agricultural Economists, vol. 46(5), pages 643-652, September.
    23. Feng Xu & Ron C. Mittelhammer & Paul W. Barkley, 1993. "Measuring the Contributions of Site Characteristics to the Value of Agricultural Land," Land Economics, University of Wisconsin Press, vol. 69(4), pages 356-369.
    24. Shultz, Steven D. & Schmitz, Nick, 2010. "The Implicit Value of Irrigation Through Parcel Level Hedonic Price Modeling," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61801, Agricultural and Applied Economics Association.
    25. repec:ags:jrapmc:122312 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eric C. Edwards & Todd Guilfoos, 2021. "The Economics of Groundwater Governance Institutions across the Globe," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1571-1594, December.
    2. Sampson, Gabriel S. & Hendricks, Nathan P. & Taylor, Mykel R., 2019. "Land market valuation of groundwater," Resource and Energy Economics, Elsevier, vol. 58(C).
    3. Callahan, Scott & Ifft, Jennifer & Michaud, Clayton P., 2022. "The impact of countercyclical farm programs on agricultural land values," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322579, Agricultural and Applied Economics Association.
    4. Filippelli, Steven K. & Sloggy, Matthew R. & Vogeler, Jody C. & Manning, Dale T. & Goemans, Christopher & Senay, Gabriel B., 2022. "Remote sensing of field-scale irrigation withdrawals in the central Ogallala aquifer region," Agricultural Water Management, Elsevier, vol. 271(C).
    5. Jie Zhu & Xiangyang Zhou & Jin Guo, 2023. "Sustainability of Agriculture: A Study of Digital Groundwater Supervision," Sustainability, MDPI, vol. 15(6), pages 1-15, March.
    6. Ellen M. Bruno & Nick Hagerty & Arthur R. Wardle, 2022. "The Political Economy of Groundwater Management: Descriptive Evidence from California," NBER Chapters, in: American Agriculture, Water Resources, and Climate Change, pages 343-365, National Bureau of Economic Research, Inc.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sampson, Gabriel S. & Hendricks, Nathan P. & Taylor, Mykel R., 2019. "Land market valuation of groundwater," Resource and Energy Economics, Elsevier, vol. 58(C).
    2. Mukherjee, Monobina & Schwabe, Kurt A., 2014. "Where's the salt? A spatial hedonic analysis of the value of groundwater to irrigated agriculture," Agricultural Water Management, Elsevier, vol. 145(C), pages 110-122.
    3. Sampson, Gabriel & Hendricks, Nathan P. & Taylor, Mykel R., 2018. "Land Market Valuation of Groundwater Availability," 2018 Annual Meeting, August 5-7, Washington, D.C. 274320, Agricultural and Applied Economics Association.
    4. Yoo, James & Simonit, Silvio & Connors, John P. & Maliszewski, Paul J. & Kinzig, Ann P. & Perrings, Charles, 2013. "The value of agricultural water rights in agricultural properties in the path of development," Ecological Economics, Elsevier, vol. 91(C), pages 57-68.
    5. Savage, Jeffrey & Ifft, Jennifer, 2013. "Does Pumping Pay: Groundwater Management Institutions and Cropland Values in Nebraska?," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150581, Agricultural and Applied Economics Association.
    6. Kent F. Kovacs & Shelby Rider, 2022. "Estimating the Demand for In Situ Groundwater for Climate Resilience: The Case of the Mississippi River Alluvial Aquifer in Arkansas," NBER Chapters, in: American Agriculture, Water Resources, and Climate Change, pages 367-381, National Bureau of Economic Research, Inc.
    7. Eric C. Edwards, 2016. "What Lies Beneath? Aquifer Heterogeneity and the Economics of Groundwater Management," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(2), pages 453-491.
    8. Suarez, Federico & Fulginiti, Lilyan & Perrin, Richard, 2015. "The Value of Water in Agriculture: The U.S. High Plains Aquifer," 2015 Conference, August 9-14, 2015, Milan, Italy 211644, International Association of Agricultural Economists.
    9. Ma, Shan & Swinton, Scott M., 2011. "Valuation of ecosystem services from rural landscapes using agricultural land prices," Ecological Economics, Elsevier, vol. 70(9), pages 1649-1659, July.
    10. Shultz, Steven, 2010. "Hedonic Price Modeling to Value Irrigated Agriculture Across a River Basin," Western Economics Forum, Western Agricultural Economics Association, vol. 9(2), pages 1-14.
    11. Arthur Grimes & Andrew Aitken, 2008. "Water, Water Somewhere: The Value of Water in a Drought-Prone Farming Region," Working Papers 08_10, Motu Economic and Public Policy Research.
    12. Daniel A. Brent, 2014. "The Value of Heterogeneous Property Rights and the Costs of Water Volatility," Monash Economics Working Papers 45-14, Monash University, Department of Economics.
    13. Anwar Hussain & Ian A. Munn & Jerry Brashier & W. Daryl Jones & James E. Henderson, 2013. "Capitalization of Hunting Lease Income into Northern Mississippi Forestland Values," Land Economics, University of Wisconsin Press, vol. 89(1), pages 137-153.
    14. Smith, Steven M., 2018. "From decentralized to centralized irrigation management," Journal of Economic Behavior & Organization, Elsevier, vol. 151(C), pages 62-87.
    15. Ariel Ortiz-Bobea, 2021. "Climate, Agriculture and Food," Papers 2105.12044, arXiv.org.
    16. Browne, Oliver R. & Ji, Xinde James, 2023. "The Economic Value of Clarifying Property Rights: Evidence from Water in Idaho’s Snake River Basin," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    17. Lee, Juhee & Hendricks, Nathan P., 2022. "Crop Choice Decisions in Response to Soil Salinization on Irrigated Land in California," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322602, Agricultural and Applied Economics Association.
    18. Oczkowski, Edward, 2022. "Estimating Supply Functions for Wine Attributes: A Two-Stage Hedonic Approach," Journal of Wine Economics, Cambridge University Press, vol. 17(1), pages 1-26, February.
    19. Junpyo Park, 2022. "Distance to Biorefinery Plants and Its Influence on Agricultural Land Value: Evidence from the United States Midwest Region," Land, MDPI, vol. 11(9), pages 1-14, September.
    20. Nathaniel H Merrill & Todd Guilfoos, 2018. "Optimal Groundwater Extraction under Uncertainty and a Spatial Stock Externality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(1), pages 220-238.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:273446. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.