Abstract
Sudan's irrigated agriculture faces water shortages with the current method of water use. How can Sudan allocate its water quota stipulated in the 1959 Nile Waters Agreement? This paper examines water policy with a dynamic optimal control model to determine steady-state optimal inter-crop and inter-temporal allocation. Control of land, water, and price to ensure that cotton is grown has a negative impact on overall farm income, and water conservation. Incomes drop significantly if free market prices are adopted without the freedom to allocate land. Water shortages could develop if other schemes claim more water, irrigated area increases, and/or high water requiring crops are planted.
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