The responsiveness of Australian farm performance to changes in irrigation water use and trade

The flexibility of farms to respond to changing economic or environmental conditions has received attention in recent years, particularly in the context of changes in the availability and pricing of irrigation water. This study uses a new unit record data set of Australian farms and a generalised pr...

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Bibliographic Details
Main Authors Bell, Rosalyn, Gali, Jyothi, Gretton, Paul, Redmond, Ineke
Format Conference Proceeding
LanguageEnglish
Published 2007
Edition418
SeriesConference Paper
Subjects
Farm Management
farm performance
irrigation
price elasticity
water trade
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Summary:The flexibility of farms to respond to changing economic or environmental conditions has received attention in recent years, particularly in the context of changes in the availability and pricing of irrigation water. This study uses a new unit record data set of Australian farms and a generalised profit-function framework to assess the links between farm performance and water use practices, involvement in water trading and other farm characteristics. Amongst other findings, the study provides experimental estimates of the responsiveness of the demand for irrigation water to price changes and the impact of farmers either buying or selling water on farm profits, after controlling for other factors.
DOI:10.22004/ag.econ.9454