Application of Positive Mathematical Programming Model to Analysis the Effect Policy of Changes in Price and Quantity of Agriculture Water on Cropping Pattern of Crops of Neka County

Document Type : Research Paper

Authors

1 Lorestan university

2 Assistance Professor of Agricultural economics of Gorgan University of Agricultural Sciences and Natural Resources

Abstract

In this study, in order to save and improve agricultural water consumption in Neka county, the farmers' response to the policy of price change and the amount of available water in agriculture was studied. In this regard, the Positive Mathematical Programming (PMP) method was used to simulate the farmers' responses in Neka county. Data gathering was done by Simple random sampling method during the 2011-2012 crop year. The scenarios included increase in water prices per cubic meter of 4, 6 and 8 times, and 20, 30 and 50 percent reduction in the amount of available water and as a complementary policy, increase of 4, 6 and 8 times the price of water, with decrease of 50, 30, 20% of available water which was considered. The results showed that with the policy of raising the price of water up to 4 times and the policy of reducing the amount of water up to 20%, there is not Considerable change compared to the primary data. with regard to the policy of rising water prices, the shift in the pattern of cropping of irrigated products into rainfed products and the level of crops are allocated to products that require a lower water requirement and higher production value. In fact, this policy doesn’t reduce water consumption significantly. Also, in the policy of reducing the amount of available water, There have been no changes from cropping pattern of irrigated crops to rainfed crops, but Water consumption decrease significantly. In conclusion, water demand is elastic to its price.

Keywords

Main Subjects


Arfini ,F. )2001(. “Mathematical Programming Models Employed in the Analysis of the Common Agriculture Policy, Italian National Institute of Agricultural Economics (INEA), Working Paper n.9.
Arfini,  F., Donati, M. and  Paris, Q. )2003( A National PMP Model for policy evaluation in agriculture using micro data and administrative information. In Paper presented at the International Conference Agricultural policy reform and WTO: Where are we heading Italy, Capri. June 23–26.2003.
Agricultur Jahad Organization. (2011). The Department of Plant Production (Central Statistics). < http://jkmaz.ir/portal/index>. (In Farsi).
Bakhshi, A., Daneshvar Kakhki, M., and Moghadasi, R. (2011). Application of Positive Mathematical Programming Model to Analyze the Effects of Alternative Water pricing Policies in Mashhad Plain. Journal of Economics and Agricultural Development(Agricultural Industries Science). Vol 3, (25), pp 284-294. (In Farsi).
Bozorgnia, A. (2011). Modifying the Cropping Pattern, the step towards the sustainability production, maintaining the basic resources and welfare of the agricultural community. Journal of Agricultural and Food Science. Pp 46-51. Iran. Planning Deputy, Water Economics Office. Pp 5-52. (In Farsi).
Buysse, J., Van Huylenbroeck, G. and Lauwers, L. )2007( Normative, positive and econometric mathematical programming as tools for incorporation of multifunctionalityin agricultural policy modeling. Agriculture, Ecosystems and Environment. 120: 70–81.
Cortignani, R. Severini, S. )2009( Modeling farm-level adoption of deficit irrigation using Positive Mathematical Programming. Journal of Agric. Water Manage.  Italy, 10:1016/ j .agwat.07.01.
Chizari, A., Mirzaei, H. (1999). Pricing and agricultural water demand of pistachio Gardens of Rafsanjan city. Journal of Agricultural Economics and Development. (26). Pp 99-113. (In Farsi).
Gharghani, F., Boostani, F., Soltani, GH. (2009). Investigating the effect of irrigation water reduction and water price increase on Cropping pattern using positive mathematical programming method, case study of Oghlid city in Fars province. Journal of Agricultural Economics Research. Vol 1, (1), pp 57-74. (In Farsi).
Fragoso, R., Marques, C., Lucas, M.R., Martins, M.B. and Jorge, R.) 2011(The economic effects of common agricultural policy on Mediterranean montado/dehesaecosystem. Journal of Policy Modeling 33,Universidade de Evora, Escola de Ciências Sociais. 311-327.
He, L., Horbulyk, T.M., Kamar Ali, Md., Le Roy, D.G. and  Klein, K.K. )2012( Proportional water sharing vs. seniority-based allocation in the Bow River basin of Southern Alberta,  Journal of Agricultural Water Management. 104 . University of Tennessee. Knoxville .2012, 21– 31.
He, L., Tyner, W., Doukkali, R. and Siam, G. )2005( Strategic policy options to improve irrigation water allocation efficiency: Analysis of Egypt and Morocco. Selected paper prepared for presenting at the American Agricultural Economics Association Annual Meeting. July 24-27.
Helming, J. F. M., L. Peeters., and p.J. J., Veedendaal. 2001. Assessing the consequences of environmental policy scenarios in Flemish agricultural. EAAE Seminar on Agricultural Sector Modeling, Bonn, 29-31 March, pp. 24.
  Henry de Frahan, B., Buysse, J., Polome, P., Harmigine, O., Lauwers, L., Van Huylenbroeck, G. and Van Meensel, J.) 2007( Positive mathematical Programming for agriculture and environmental policy analysis: review and practice, In: Weintraub, A., Bjorndal, T., Epstein, R. and Romero,c. (Eds). Management of Natural Resuorces: A Handbook of Operations Research Models, Algorithms, and Implementations. Kluwer Management Science (Series Editor: Hillier, F.S),in Press.
Howitt, R.E. )1995a( Positive Mathematical Programming. American Journal of Agricultural Economics. 77(2): 329-342.
Howitt ,R.E.  )1995b( A Calibration Method for Agricultural Economic Production Models. Journal of Agricultural Economics. 46(2): 147-159.
Howitt, R.E., Azuara, J.M., MacEwan, D. and Lund, J.R. (2012) Calibrating disaggregate economic models of agricultural production and water management. Journal of Science of Environmental Modelling & Software :38. University of California. Davis. California. 2012: 244-258.
Jalil Piran, H. (2011). Considerations for water pricing policy in the agricultural sector (Office of Research and Production Sector Policies). Journal of Economics- Monthly review of issues and economic policies. Vol 7 and 8, pp 169-172. (In Farsi).
Keramatzadeh, A., Chizari, A. H., Sharzehei, GH. (2011). The Role of Water Market in Determining Agricultural Water Value (PMP) with Positive Mathematical Programming Approach, A Case Study of Downstream of Shirin Dam in Bojnourd Valley. Iranian Journal of Economic Research and Agricultural Development. Vol 2-42 (1), pp 27-43. (In Farsi).
Mansouri, H., Kohansal, M.R. and Khadem Ghousi. M.F. (2009). Introducing a lexicographic goal programming for environmental conservation program in farm activities: Acase study in iran. China Agricultural Review 1 (4): 478-484.
Medellin -Azuara, J.M., Howitt, R.E., . Harou, J.J., 2012. Predicting farmer responses to water pricing, rationing and subsidies assuming profit maximizing investment in irrigation technology. Journal of Agricultural Water Management 108. University of California, Davis, California, 2012, pp. 73-82.
Paris, Q. and Howitt, R.E .(1998) “An analysis of ill-posed production problems using Maximum Entropy. American Journal of Agricultural Economics. 80(1): 124-138.
Saboohi, M., Soltani, GH., Zibaei, M. (2007). Investigating the Effect of Irrigation Water Price Changes on Private and Social Benefits Using Positive Mathematical Programming Pattern. Journal of Agricultural Industries and Science. Vol 1, (21). Pp53-71. (In Farsi).
Shajari, SH. Barikani, A., Amjadi, A. (2009). Water demand management using water pricing policy in Jahrom, Case Study of Shahani Date. Journal of Agricultural Economics and Development. Vol 71, (65), pp 55-72. (In Farsi).
Röhm, O. and Dabbert, S. (2003) “Integrating  Agri-Environmental Programs into Regional Production Models: An extension of positive mathematical programming. American Journal of Agricultural Economics. 85(1): 254-65.
Ward Kristen, B. (2003) "Evaluating producer response to water policies in agriculture: The role of input substitution, spatial heterogeneity and input quality" ph.D.Dissertation, university of California, Davis. USA.