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<br />ASPECTS OF PRECIPITATION ENHANCEMENT <br /> <br />13 <br /> <br />fall, realism was enhanced by considering timing of rainfall, new prices <br />corresponding to increased yields, associated changes in the cost of pro- <br />duction and marketing, changes in regional output and personal income, <br />changes in optimal planting patterns, and proper separation of precipita- <br />tion effects from those of temperature and technology. The economic <br />analyses were complicated by the natural va.riability of rainfall (as is the <br />evaluation of changes in rainfall due to seeding). Despite this, potential <br />increased direct benefits were estimated to substantially exceed costs, <br />even with assumptions of price decreases and minimum responses in <br />yield. For example, an additional 10% in ~;rowing season rainfall was <br />estimated to increase net farm and range revenues by as much as $43 <br />million (1973 dollars) in Montana (Stroup 1973). <br />More recently, the economic effects of added growing season rainfall <br />on High Plains agriculture were examined at the North Dakota Agricul- <br />tural Experiment Station (Schaffner et al. 1983). This study addressed the <br />effects within four farming areas spread across the state by creating a <br />representative farm in each area. It is based on known effects of changes <br />in natural rainfall on crops. Five objectives were specified: <br /> <br />. Measure dollar values of direct benefits to farmers and ranchers of <br />added growing season rainfall <br />. Determine enterprise adjustments needed on the farm and ranch to <br />respond most profitably to increased rainfall <br />. Measure the total added direct benefits to the four farming areas and <br />the state <br />. Examine the broader enterprise shifts within farming areas due to <br />added growing season rainfall <br />. Measure the total impact of added growing season rainfall on the <br />economy of the state <br /> <br />Depending on the farming area, added rainfalls of 2 em for June-July <br />and 3 em for June-August were used to determine crop, livestock, and <br />economic responses. The rain increases would be realized over many <br />consecutive growing seasons. The added quantities represent much <br />larger percentage changes for the western than the eastern parts of the <br />state because the west is normally much drier. Linear programming <br />models were applied to select the most profitable farm enterprise plans <br />with normal and added rainfall. Changes expected in yield from 15 <br />different crops and forages and in livestock numbers were estimated. <br />Five-year average prices for crop and livestock products in each farming <br />area were used in the economic analysis. An input/ output model based <br />on actual expenditure of North Dakota businesses was used to account <br />for spending and respending to estimate responses of other sectors of the <br />economy (e.g., finance, wholesale and agricultural processing, construc- <br />tion, retail, real estate, services, households, government). <br />In 1977-1981 average dollars, the assumed increases in rainfall pro- <br />duced increases in direct returns over variable costs to agriculture for the <br />