Investigating the Potential Impacts of Water Supply Policies on Agricultural Production in the South of Kerman Province

Document Type : Original Article

Authors

1 PHD student of Agricultural Economics, Payam Noor University

2 Associate Professor of Agricultural Economics, Payam Noor University

3 Assistant Professor Payam Noor university of Tehran

4 Professor of Agricultural Science (Biotechnology) Payam Noor University

Abstract

In recent years, numerous policy programs such as the construction of dams on surface water resources in upstream areas, rationing of water input in the agricultural sector, installation of meters on groundwater wells and seal of the unauthorized exploitation wells to solve water deficit problems in agricultural sector of Kerman province used. Implementation of these policies on the water supply side have many effects on the cropping pattern and farmers’ gross profit of in south of Kerman province and so it requires proper planning to water resources management and agricultural production in the region. For this purpose, in this study to estimate the economic value of agricultural land and water inputs and then to evaluate the potential impact of water supply policies on the agricultural sector in the south of Kerman province using of the statistical data related to crop years of 1996-1997 and the PMP advanced economic planning model. The results showed that by applying the water supply policies, the cropping pattern leads to the development acreage of low water and grain products and onions, cotton and vegetables experience the greatest reduction in acreage. Under these conditions, Kerman farmers pay about one-third of the economic value of agricultural water in the form of costs of extraction and water transfer. The farmers also receive a price elasticity of water demand of 0/175. The water resources supply polices decrease the total gross margin of cropping pattern 0/92 to 3/46 percentage compared to the base year conditions,

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