Reducing uncertainty on the Southern High Plains

F

arming practices on the Southern High Plains, and more specifically a farmer’s choice of whether or not to change them, are affected by irrigation methods and crop insurance.

Dr. Darren Hudson of the Department of Agricultural and Applied Economics is the graduate director and helps put together funding for research.

Dr. Hudson said, “We have students from all over doing research that impacts this area.”

Jorge Romero-Habeych is not your traditional student, he served in the Army and worked as an analyst in the natural gas industry before returning to school. He received his bachelor’s and master’s degrees in economics from the University of Central Florida. As a doctoral student in Agricultural and Applied Economics, Romero-Habeych’s research explores how farmers choose irrigation techniques.

Agriculture on the Southern High Plains was significantly impacted by the introduction of center pivot irrigation.

 “Prior to the center pivot in the 1990s, … irrigation was very inefficient,” Romero-Habeych said.

By adopting center pivots farmers were able to sustain yields while using less water.

In recent years farmers have had the option of adopting an even more efficient alternative, subsurface drip irrigation. Adopting efficient irrigation techniques along with the right kind of crop insurance is essential for farmers to reduce their exposure to risk.

“Why is it that we don’t see a wider implementation of this technology in the area?” Romero-Habeych asked. “My theory is that crop insurance in conjunction with already existing irrigation techniques might be making drip irrigation less attractive,” Romero-Habeych said. “On the margin, adopting drip is relatively expensive and the benefit in terms of risk reduction is likely not worth the cost.”

In terms of water use, wider adoption of drip irrigation by farmers on the Southern High Plains does not necessarily translate to less pressure on the Ogallala aquifer. Romero-Habeych made an interesting point on the issue.

“Past experience with the center pivot shows that its adoption led to more water use. Farmers actually started using more water than before because they started planting in fields that had previously not been economically attractive,” Romero-Habeych said.

Using the most efficient farming practices possible is vital for all farmer’s to continue production and not give up yields.

“Perhaps drip irrigation would be more widely adopted in the area if existing crop insurance choices were not made available. The combination of current insurance and irrigation options to reduce risk exposure might be crowding out drip,” Romero-Habeych said. “However, that might be a good outcome for the aquifer.”

How farmers on the Southern High Plains are affected by government policies, along with understanding how they use the tools at their disposal to reduce uncertainty, is what drives Romero-Habeych’s research.