| Abstract: | ABSTRACT: A partial production function for corn that considers the time and amount of water applications is determined. Examples are worked out by using data on site specific parameters for nine soil sites in the Great Plains Region repesenting various combinations of water holding capacity, pan evaporation, and average rainfall. It is found that soils with a low water holding capacity are more water and energy intensive in crop production and thus more vulnerable to fluctuations in net returns due to declining water tables or energy shortages. Despite this, farmers of low water holding capacity soils are likely to opt for irrigation. This points to the existence of a necessary, but sufficient, condition for socially inefficient use of ground water resources. This calls to question the property right concept in water created through the appropriation doctrine and the “law of capture.” This paper indicates the type of analysis that must be undertaken in order to make appropriate changes in laws governing water use. |
