Irrigation Sciences and Engineering

Irrigation Sciences and Engineering

Assessing the Economic Efficiency of Water Distribution in the Agricultural Sector through Crop Pattern Modification (Case Study: Qazvin Plain Irrigation Network)

Document Type : Research Paper

Authors
1 Associated professor, Department of Water Science and Engineering, Imam Khomeini International University, Qazvin, Iran.
2 PhD sudent in Water Resources Engineering, Department of Water Science and Engineering, Imam Khomeini International University, Qazvin, Iran.
Abstract
There are various methods to enhance water productivity, including the utilization of management tools such as water pricing policies. However, the lack of proper pricing of agricultural water and the absence of real water prices for beneficiaries have resulted in water being considered a low-value commodity that beneficiaries use without proper consideration or management (Kazem Attar et al., 2020(. The widening gap between water supply and demand in the future highlights the need for serious attention to the fundamentals of economic planning of water resources and its optimal allocation, along with proper management of water resources. In Qazvin plain, the agricultural sector bears a significant burden of job creation, and many people rely on it for their livelihoods. Effective water resources management should not only meet the long-term needs of stakeholders but also preserve groundwater resources. However, it is important to consider whether farmers in all regions can afford to pay the actual price of water, and if the cropping pattern of different regions should affect water pricing. Therefore, the aim of this study was to determine the real price of water by calculating its cost and evaluating farmers' income with the current water cultivation and distribution patterns in case of water supply at actual prices. The study also investigated the impact of two optimization models, including A- optimization of cropping pattern and B- simultaneous optimization of cropping pattern and water distribution on farmers' income when the water supply is at the actual price in the Qazvin plain irrigation network. Finding answers to these questions is a critical step in achieving economic efficiency in water consumption within the framework of integrated water resources management.
Keywords
Subjects

Materials and Methods

Calculate the cost of water

The study employed the engineering economy approach to calculate the cost of each cubic meter of water. This approach considers all capital costs, operation and maintenance expenses of facilities, and other relevant costs throughout the entire lifespan of the project. By creating a cash flow table of costs, the total cost of water is calculated using this method of engineering economics (Tahamipour Zarandi and Yazdani, 2016).

 

Yield function

To estimate the quantity of product produced based on the volume of water consumed, the water-production relationship presented by Rao et al. (Rao et al., 1988) was employed. According to equation (1), the yield function of crops during various growth periods has a linear correlation with the volume of water consumed.

 

 

where Ya is the actual yield in tons per hectare, Ym is the potential yield in tons per hectare, Kyi is the coefficient of sensitivity of the crop to water deficit during the i-th growth period, AETi is the amount of water given to the plant (evaporation or actual transpiration) during the i-th growth period in cubic meters, PETi is the water requirement of the plant (potential evapotranspiration) during the i-th growth period in cubic meters, and n is the number of growth periods for each plant.

 

Productivity

There are different types and numbers of productivity indicators depending on different perspectives. In this study, the financial index of water efficiency was used, which is in line with the main objective. This index is the ratio of net income per unit of water volume, also known as Net Benefit Per Drop.

 

Results and Discussion

The estimated price of each cubic meter of water using economic and engineering relations was 8,595 rials. In the current situation (water supply at the price of 940 Rials), the Qazvin Plain irrigation network's income is approximately 89 billion Tomans. However, if each cubic meter of water is supplied at the price of 8,595 Rials, the current model of water cultivation and distribution not only fails to generate income for farmers but also causes them harm. Through the optimization of the cultivation pattern, the income of the Qazvin Plain irrigation network can increase to about 101 billion Tomans. Simultaneously optimizing the cultivation pattern and water distribution can lead to an income of approximately 233 billion Tomans. The Net Benefit Per Drop (NPBD) increases by an average of 40% by optimizing the cultivation pattern and by an average of 389.6% by simultaneously optimizing the cultivation and water distribution pattern compared to the current situation where each cubic meter of water is supplied at 940 Rials. However, in the case of supplying each cubic meter of water at the price of 8,595 Rials and not changing the cultivation and water distribution pattern, the average NPBD will decrease by 289.4% compared to the current situation. By optimizing the cultivation pattern, it is found that with the increase in water price and decrease in gross profit, the model tends to cultivate crops that have higher yield and less sensitivity to water stress. According to this, sugar beet and potato are the most suitable crops for cultivation in the Qazvin Plain irrigation network. Although other crops, such as wheat and barley, have low sensitivity to water stress, their low yield and subsequent decline in the irrigation network's income make them less desirable for cultivation.

 

 Result

The price of water is one of the important economic variables that can play a significant role in the optimal use of water resources in the agricultural sector. By implementing water pricing policies, the final cost of production increases, and it becomes essential to select a crop combination that yields higher benefits per unit of water. This study focuses on estimating the total cost of each cubic meter of water using engineering-economic relationships and its impact on the economy of farmers under two optimization models: optimizing the cropping pattern and simultaneously optimizing the cropping pattern and water distribution. The total cost of each cubic meter of water was estimated at 8,595 rials, and the results showed that the current cropping pattern is not suitable if the price of water increases. However, by optimizing the cropping pattern and simultaneously optimizing the cropping pattern and water distribution, it is possible to achieve an income approximately 14.7% and 162.7% higher than the current situation where the price of each cubic meter of water is 940 rials, respectively.

 

Acknowledgments

The Qazvin Regional Water Company expresses its utmost gratitude and appreciation to the Agricultural Jihad Organization, which has cooperated in carrying out this research.

  • Aidam, P.W., 2015. The impact of water-pricing policy on the demand for water resources by farmers in Ghana. Agricultural Water Management, 158, pp.10-16.

 

  • Asadi, H., Mahmoodi, M. and Zare, S., 2022. Determining Profitability and the Economic Productivity of Agricultural Water in Crop Production. Iranian Journal of Irrigation & Drainage, 15(6), pp.1404-1411. (In Persian)

 

  • Badibarzin, H., Hashemi Tabar, M. and Hossini, S.M., 2019. Effect of Pricing and Rationing Strategies of Irrigation Water on Cropping Pattern and Water Demand in Sistan Plain. Journal of Water Research in Agriculture, 33(3), pp.463-478. (In Persian).

 

  • Balali, H. and Kasbian Lal, F., 2022. Economic Valuation of Groundwater in Agriculture Sector (Case Study: Hamedan-Bahar Plain). Journal Of Agricultural Economics and Development, 36(1), pp.37-48. (In Persian)

 

  • Biniaz, A., Ahmadpour Borazjani, M., Ziaee, S. and Mohammadi, H., 2021. Potential Effects of Agricultural Water Pricing and Quota on Productivity and Use of Agricultural Inputs in Kohgiluyeh. Journal of Water Research in Agriculture, 35(1), pp.89-106. (In Persian).

 

 

  • Chu, L. and Grafton, R.Q., 2020. Water pricing and the value-add of irrigation water in Vietnam: Insights from a crop choice model fitted to a national household survey. Agricultural Water Management, 228, p.105881.

 

  • Ghaderzadeh, H., Shayanmehr, S. and Hezareh, R., 2017. Investigate the effects of pricing policy of water irrigation on cropping pattern and water consumption productivity (Case study: Ghorveh-Dehgolan plain at Kurdistan province). Iranian Journal of Irrigation & Drainage, 11(4), pp.609-617. (In Persian).

 

  • Hoseini, M., Mazandaranizadeh, H. and Nazari, B., 2021. Simultaneously Management of Surface and Groundwater Resources and Increasing Farmers' Resilience to Water Scarcity by Predicting the Price of Agricultural Products and using GA (Case Study of Irrigation and Drainage Network of Qazvin Plain). Iranian Journal of Soil and Water Research, 52(2), pp.563-576. (In Persian).

 

  • Hosseini, S.M. and Mazandarani Zadeh, H., Optimal Water Allocation among Agricultural Consumers Using Crop Pattern Change Approach to Improve Farmers' Livelihood. Irrigation Sciences and Engineering. Irrigation Sciences and Engineering, 45(3), pp.47-61. (In Persian).

 

  • Kazem Attar, H., Noory, H. and Ebrahimian, H., 2020. Effect of water pricing on persuading farmers to use modern irrigation systems and increasing the economic productivity of irrigation water (Case study: Qazvin Plain Irrigation Network). Iranian Journal of Irrigation & Drainage, 14(2), pp.616-625. (In Persian).

 

  • Mansouri, M. and Ghiasi, A., 2002. Estimation of irrigation water cost price at reservoir dams, using engineering economic approach a case study of Bukan, Mahabad and Barun reservoirs. Journal Agricultural Economics and Development, 10(37), 171-192. (In Persian).

 

  • Mazandarani Zadeh, H. and Hoseini, M., 2023. Investigating the effect of agricultural product price forecasting on groundwater level using systems dynamics, in order to simultaneously maintain the welfare of farmers and groundwater resources. Iranian Journal of Soil and Water Research, 53(11), 2565-2582. (In Persian).

 

 

  • Qu, Y., Kang, J., Lin, X., Ni, H., Jiang, Y. and Chen, G., 2022. Analysis of agriculture water pricing reform in a water-deficit area of Northwest China. Water Policy, 24(10), pp.1570-1589.

 

  • Rao, N.H., Sarma, P.B.S. and Chander, S., 1988. A simple dated water-production function for use in irrigated agriculture. Agricultural Water Management, 13(1), pp.25-32.

 

 

  • Sahin, O., Bertone, E., Beal, C. and Stewart, R.A., 2018. Evaluating a novel tiered scarcity adjusted water budget and pricing structure using a holistic systems modelling approach. Journal of Environmental Management, 215, pp.79-90.

 

  • Shirzadi Laskookalayeh, S., Sabouhi, M., Keikha, A. A. and Davari, K., 2018. Survey of the stability and balance of the aquifer in order to achieve sustainable management (Case Study: Nishabour basin). Agricultural Economics Research, 10(39), pp.187-220. (In Persian)

 

  • Siasar, H. and Salari, A., 2021. Optimization of Sistan Plain Cropping Pattern Using Multi-Objective Chaotic Particle Swarm Optimization Algorithm. Iranian Journal of Irrigation & Drainage, 15(5), pp.1006-1017. (In Persian)

 

 

  • Tahamipour zarandi, M, and Yazdani, S., 2016. The Role of Economic Instruments in IWRM: The Case Study of Irrigation Water Pricing in Western Basins of Iran. Iranian Journal of Agricultural Economics and Development Research, 47(3), pp.545-556. (In Persian)

 

  • Taher, S. A., Shibani, M. R., Nosratabadi, S. M., and Jadidoleslam, M., 2011. A New Approach for Optimal Allocation of DG in Distribution Systems Using GA Method. Computational Intelligence in Electrical Engineering, 2(3), pp.79-90.

 

  • Zhou, Q., Wu, F. and Zhang, Q., 2015. Is irrigation water price an effective leverage for water management? An empirical study in the middle reaches of the Heihe River basin. Physics and Chemistry of the Earth, Parts A/B/C, 89, pp.25-32.
Volume 48, Issue 1
Spring 2025
Pages 39-57

  • Receive Date 12 March 2023
  • Revise Date 13 July 2023
  • Accept Date 15 July 2023
  • Publish Date 21 March 2025