Abstract
Our study area in the People's Victory Canal Irrigation District of Henan Province in China has been transferring agricultural water to the city for municipal use. This study starts with an examination of the impacts of irrigation frequency, irrigation water sources, and irrigation water supply performance on crop yield and net crop revenue, using data from a survey of 182 households in the study area. Thereafter, it analyzes the impact of agricultural water reallocation (AWR) on crop yield and revenue. The study ends with an estimation of the compensation for affected farmers and a discussion of the compensation methods. Regression results indicate that irrigation frequency shows a significantly positive impact on crop yield and net crop revenue. The change of irrigation water source from canal water to well water and local small river water decreases the integrated crop yield of wheat and rice by 9% and 12%, and decreases the net integrated crop revenue by 16% and 19%, respectively. AWR decreases the integrated crop yield of wheat and rice by at least 2%, and decreases the net integrated crop revenue by at least 3.5%. Estimated compensation for affected farmers is between 78.72 and 97.85 USD/ha.
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