IMPACT OF FEDERAL ACREAGE LIMITATION POLICY ON WESTERN IRRIGATED AGRICULTURE

Long-Run Average Cost Curves were developed for 18 Federal irrigation districts indicating in general constant cost industry. Conclusions were that Interior's acreage limitation policy would cause no appreciable loss in economic efficiency nor an increase in food costs. Implementation of full-cost water pricing to recapture Federal subsidies would greatly reduce the amount of water demanded and significantly impact production of forages and other high water using crops