Optimal Management of Irrigation Water from Aquifer and Surface sources

Abstract We explore the economic merits of on-farm water storage with tailwater recovery systems to reduce aquifer depletion in a region expanding irrigated acreage and substantial off-season precipitation. Gains are on broad scale long planning horizon, including more than $4 billion producer surplus, 5 million acre-feet conserved groundwater, land capitalization $24 per acre. Sensitivity analyses provide insights respect impact discount rates, rainfed returns, return flows, recharge rates. Results can inform stakeholders about optimal allocation funds directed at agricultural practice adoption investments.