Agricultural Economic Water Productivity Differences across Counties in the Colorado River Basin

Abstract

This study estimates the relative contribution of different factors to the wide variation in agricultural economic water productivity (EWP) across Colorado River Basin counties. It updates EWP measures for Basin counties using more detailed, localized data for the Colorado River mainstem. Using the Schwarz Bayesian Information Criterion for variable selection, regression analysis and productivity accounting methods identified factors contributing to EWP differences. The EWP was USD 1033 (USD 2023)/acre foot (af) for Lower Basin Counties on the U.S.–Mexico Border, USD 729 (USD 2023)/af for other Lower Basin Counties, and USD 168 (USD 2023)/af for Upper Basin Counties. Adoption rates for improved irrigation technologies showed little inter-county variation and so did not have a statistically significant impact on EWP. Counties with the lowest EWP consumed 25% of the Basin’s agricultural water (>2.3 million af) to generate 3% of the Basin’s crop revenue. Low populations/remoteness and more irrigated acreage per farm were negatively associated with EWP. Warmer winter temperatures and greater July humidity were positively associated with EWP. When controlling for other factors, being on the Border increased a county’s EWP by USD 570 (2023 USD)/af. Border Counties have greater access to labor from Mexico, enabling greater production of high-value, labor-intensive specialty crops.