WSP09842

• File Number: 8273.600.30
• Description: Colorado River Basin Salinity Control - Federal Agencies - USDA
• Basin: Colorado Mainstem
• Water Division: 5
• Date: 1/1/1991
• Title: The Economics and Management of Water and Drainage in Agriculture
• Water Supply Pro - Doc Type: Report/Study

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REUSE OF AGRICULTIJRAL DRAINAGE

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Table 6. Relative farm and regional profitability associated with different
reuse/disposal strategies.

Strategy 1 Strategy 2 Strategy 3

--------m-.-------m---Disposai cast (S/ullit)-----------------_---m-
o 35 100 0 35 100 0 35 100

Crop yield price index = 100
Project 1 100 100 100 100.1 100.5 101.5 100.1 100.6 101.5
Project 2 100 100 100 100.1 100.5 101.5 100.1 100.6 101.5
ProjecI3 99.7 99.7 99.7 98.2 98.6 99.1 100.1 100.6 101.5
Project 4 97.3 97.3 97.3 79.1 79.5 80.2 100.1 100.6 101.5
Region' 100 100 100 95.4 95.5 96.3 100.8 101.3 102.2
Crop yield price index = 120
Region' 100 100 100 96.2 98.4 99.3 104.3 105.9 107.3
Surface warer price index = 150
Region' 100 100 100 99.1 99.1 100.1 104.5 106.1 107.9

-Calculated <l3 regional net income (net of treatment costs $lS0lunit o(water) relative 10 the
valUC3 in the case with no reuse.

and evaporation Costs. No economies ofsenle as a result of regional coopera-
"tion were considered in this analysis.
Two crop prices were considered: a basic price and a price reflecting a 20
percent increase. The latter price level is used to represent situations where the
cropping patterns include more profitable crops. A water price representing a
50-percent increase was also included for purposes of assessing the economics
of the alternative drainage reuse and disposal strategies under different condi-
tions of external costs.
Results of the economic analysis are given in lable 6 for different disposal
costs (0. 35, and 1(0). In the case of Strategy I, some yield loss OCCUlli due to
increased downstream salinity (see table 1) and due to the disposal costs
associated with lhe volume of drainage water disposed of to the river. In
Projects 1 and 2, no yield losses occur but there are disposal costs; farms in
Projects 3 and 4 incur both yield losses and disposal costs. In Strategy II, no
yield losses occur for Projects I and 2 and less drainage needs to be dispoSed of
compared to Strategy J. Farms in Projects 3 and 4 suffer greater yield losses

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