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<br />ASPECTS OF PRECIPITATION ENHANCEMENT <br /> <br />17 <br /> <br />when applied at various spatial and temporal aggregations (Garcia et al. <br />1990). A midwestern-scale econometric model linked com and soybean <br />production to U.S. cattle, hog, and poultry sectors to determine the eco- <br />nomic effects of precipitation enhancement in the Com Belt. A regional <br />supply formulation was used to assess increased precipitation responses <br />in production, prices, revenues to producers, and savings in consumer <br />expenditures on meat. A schematic of the model is shown in Figure 2.1. <br />The results of the simulation illustrate potential distributions of economic <br />effects, demonstrate the importance of careful planning in the use of <br />weather modification technology, and provide information that is useful <br />in determining the roles of local, state, and federal governments in sup- <br />port of weather modification. Differences in soil types, climatic condi- <br />tions, and crop response all influence producer revenues for a region of <br />given size with precipitation enhancement over a given time period. <br />According to the Garcia et al. (1990) study, producers within small target <br />regions (with increased precipitation and crop yields) make the largest <br />revenue gains, whereas producers outside the small target regions expe- <br />rience only small revenue reductions due to the increased competition. <br />The added revenue from a small area within a larger target region de- <br />clines, and the revenues of producers in adjacent nontarget regions are <br />reduced much more, as the size .of the total target region increases. The <br />econometric simulation led to the conclusion that "for programs covering <br />multi-state areas, the change in total [producer] revenues to the target <br />areas is negative." However, in the simulation, consumer savings in- <br /> <br />Weather <br /> <br /> <br />Meat <br />Demand <br /> <br />Com and <br />Soybean <br />Demand <br /> <br />t <br /> <br />t represents years and t + &t lagged effects <br /> <br />Figure 2.1-Flow Chart of an Economic Model for Determining the <br />Economic Effects of Precipitation Enhancement in the Corn Belt <br />(Garcia et al. 1990) <br />