Input Substitution in Irrigated Agriculture in the High Plains of Texas, 1970-80 Page: 65
The following text was automatically extracted from the image on this page using optical character recognition software:
Input Substitution and Irrigation 65
Table 1. Changes in Input and Output Prices in a Seven County Area of the Texas High Plains
Variable 1970 1980 1970-80
Pump costa ($/acre foot) 1.71 3.58 +109.4
Center pivotb cost ($user cost/system) 2,113 2,207 +4.4
Furrow cost ($user cost/acre) 1.71 2.16 +26.3
Wheel roll cost ($user cost/system) 1,202 1,019 -15.2
Wage ($/hour) 1.16 1.26 +8.6
Cotton price ($/lb.) 0.21 0.23 +9.5
Grain sorghum ($/bushel) 0.94 1.04 + 10.6
Note: The seven counties are Cochran, Dawson, Gaines, Hockley, Lynn, Terry and Yoakum, covering 4,304,640 acres.
a Pump cost is the cost of the energy needed to pump one acre foot of water per foot of lift times the average lift, expressed in 1967
b See the appendix for a discussion of the calculation of all input user costs and output prices. All costs and prices are expressed in 1967
Shephard, Uzawa, and Diewert. They are used
to estimate elasticities of substitution from cost-
minimizing factor demand equations. To this
end, assume that for each farm there exists a
(1) C = C(P,, q) i 1,..., 5,
where q is the vector of outputs and P, is the
price of the ith input. Uzawa showed that, un-
der the postulate of cost minimization, the par-
tial elasticity of substitution between inputs i
and j is
(2) 0, = C(a2C/OP,aP)/((oC/aP1)(OC/Pj)).
A translog cost function (Christensen, Jor-
genson, and Lau) pertaining to five inputs
(water, center pivot, furrow, wheel roll, and
labor) and two outputs (cotton and grain sor-
ghum) and a fixed factor (rainfall [R]) may be
(3) In C= a, + a,ln Yk
+ fln P, + Ojn R
+ 2 6ki k=l Ykln
+ 12 (t 'y l1n P,1n
+ 12( rr(ln R)2)
+ 2 pikn Ykln P,
+ 2 lnk Ykln R
+ 4 ,ln Piln R,
Table 2. Changes in Input Usage and Crop Output in a Seven County Area of the Texas High
Variable 1970 1980 1970-80
Pumpagea (acre feet) 168,795 83,324 -50.6
Center pivot (systems) 6 164 + 2,633
Surface irrigation (acres) 42,714 25,917 -39.3
Wheel roll (systems) 378 375 -1
Labor (+180 day workers) 423 460 +8.7
Cotton (million lbs.) 29.138 35.292 +21.1
Grain sorghum (100,000 bushels) 13.824 2.986 -78.4
Note: All measurements are averages per county.
a Pumpage, cotton and grain sorghum measurements are two-year averages to partially smooth for seasonal variation in weather. See
the appendix for an explanation of variable calculations.
Here’s what’s next.
This article can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Article.
Nieswiadomy, Michael L. Input Substitution in Irrigated Agriculture in the High Plains of Texas, 1970-80, article, July 1988; [Milwaukee, Wisconsin]. (https://digital.library.unt.edu/ark:/67531/metadc71788/m1/3/: accessed May 23, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; crediting UNT College of Arts and Sciences.