Estimation of opportunity cost for fallowing agricultural units in Jordan Valley.

Book Title: NA
Year Published: 2005
Month Published: NA
Author: Salti, A. H. ; Salman, A. Z.
Book Group Author: NA
Abstract:

Irrigation water policy is an integral part of agricultural policy; it can be defined as a group of procedures adopted by the responsible authorities to achieve the main goals of agricultural policies. The objective of this paper is to establish a mechanism to assess the value of compensation that should be paid to farmers to give up their share of irrigation water for the whole year or for the summer period in the Jordan Valley and its districts. The assessment procedure used the actual gross margin values for each crop category (vegetables and field crops) and the percentage of the real cultivated areas in each district of the Jordan Valley. The estimated values were calculated using subsidized and un-subsidized irrigation water prices. The estimated compensation costs for one fallowed dunum of vegetables for the whole year in Northern Shounah were 96 and 52 JD under subsidized and full-cost-recovery irrigation water prices, respectively; while the estimated compensation costs for one fallowed dunum of summer vegetables were 39 and 21 JD under the same circumstances. On the other hand, the estimated compensation costs for the agricultural units planted with field crops in Northern Shounah were 17JD/year. The estimated compensation costs for one fallowed dunum of vegetables for the whole year in "Dair Ala and Southern Shounah" were 75 and 32 JD under subsidized and full-cost-recovery irrigation water prices, respectively; while the estimated compensation costs for one fallowed dunum of summer vegetables were 18.7 and 8 JD under the same circumstances. On the other hand, the estimated compensation costs for the agricultural units planted with field crops in "Dair Ala and Southern Shounah" were 17.4 JD/year. One of the main recommendations of this paper is to use the real gross margin values in different areas and for different crops to estimate the compensation of the fallowed agricultural units in the Jordan Valley, to ensure rational compensation from the farmers' point of view. In addition, the estimated compensation values for each area must be declared prior to the planting season, to allow transparency and voluntary participation by the farmers.

Pages: 133 - 144
URL: http://0-search.ebscohost.com.catalog.library.colostate.edu/login.aspx?direct=true&AuthType=cookie,ip,url,cpid&custid=s4640792&db=lah&AN=20053045756&site=ehost-live
Volume: 32
Number: 1
Journal: Dirasat. Agricultural Sciences
Journal ISO: NA
Organization: NA
Publisher: NA
ISBN: NA
ISSN: 1026-3764
DOI: NA
Keywords:

agricultural policy, compensation, fallow, field crops,gross margins, irrigation water, opportunity costs, vegetables, waterconservation, water policy, Jordan, West Asia, Asia, Middle East,Developing Countries, fallowing, indemnification, vegetable crops,Agricultural Economics (EE110), Horticultural Economics (EE111) (NewMarch 2000), Natural Resource Economics (EE115) (New March 2000), Policyand Planning (EE120), Horticultural Crops (FF003) (New March 2000),Field Crops (FF005) (New March 2000), Plant Production (FF100), PlantCropping Systems (FF150), Soil Water Management (Irrigation andDrainage) (JJ800) (Revised June 2002) [formerly Soil Water Management],Water Resources (PP200)

Source: EBSCO
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