PUB00041

• Year: 1998
• Title: Western Irrigation Economic Benfits Review
• CWCB Section: Finance
• Author: Family Farm Alliance
• Description: White paper on the role of irrigated agriculture in the 21st century.
• Publications - Doc Type: Tech Report

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DIPLA:" Il1(HJclin~ system. DIPL\:,\ is an inJlut.out[lUr (I/O) model that has het.'1l used in
numerous cl'onomil' impact studies and is maintailll'd hy a technical consulting group
pHllne-sota I:\IPL\\, Group). The hasic modrll'onsists of regional and national <bla and
I/O algorithms for impact .malysis. The 1\1PL\S model is h:lsed on nation:.1 aHragc
l'('nnomic r('lationships hct\\('cn economic s('ctors--hu~'ing .md sdling of goods and
sCn'il..'l's--with slate owd rcginnal (l'OUllty) Incl dat;t :ldjustcd or rccalihrafl'd to IH.'ttu
match regional trans:lction (from n>gional data ohtained frnm the Bureau of Econnmic
Analysis). As such. DIPL:\;\' is an 110 model that allnns for .lIl assessment of regional
econumic l'onditiom using nOll-sliney data. prO\iding fnr :l gl'Ill'r:tl. hut acceptabl('. range
of accuracy.

For o;talt.'-Ienl ;lIlaly~l'~. 1:\1111....\:'\ i~ uwd to e~tirn;ttl' dirn't and indin'ct cnJllonllC
imp:lcts for the agricultural industry. with 1l10dcJill~ adjustml'llts madl..' to :t\'oid
douhl('-cuullting l'rrors among tltl' agricultur:tl production, agricultur:tl sen'je('s. and food
pl'o('essing Sl..'ctors. As presented hen'. the 1/0 mode) uses 199..J d:tta and scctor
relationships, with lhe income \'alue c:\pressed in 1995 dollars. Also. the state-lenJ
an:llyses :1I"e used to illustrate the "linkages" among the major economic se('tors; for
example, thl..' huying and selling of goods and s('n'iees by thl..' agricultural production and
food processing S('ctors to se\'('ral oth('I' Sl'('tors of the economy. By identifying these
Iink:tgt's, tl1(' flow of economic acti\-ity created by the agricultural industry C:III he
rt'\'ealed.

,\t tht' county or n'giOlwl le\'c1. econnnllc impact t'stimates an' hascd on two
approacht's, producing a low-to-high ntlue range. First. the multipliers denloped h~' the
S(;lte (/0 modeling analyscs arc applicd to the counties. In some cases, this approach could
onr-estinHlte the tot:ll impact ('[feet within the county, and it would hest be descrihed as
including indirect effects that could ('xtend beyond a ,~pecific count)' (high ntlu(' ('stim:ltc).
Second, a regional impact multiplier denloped from other 1/0 and economic base studies is
used. This income multiplier (1.7) is representatin of irrigated agriculture's direct and
seconda,!' income effects ami is uwl.! ;IS a low \'alu(' cstimate within T:lblc 3. Both

Economlce Benefit l?eYlelU/P3ge-'~