Value of Irrigation Water for Crop Production in the South Saskatchewan River Basin

Abstract

In this study, value of water used for irrigation was estimated in the South Saskatchewan River Basin using the concept of producer surplus. The basin was divided into sub-basins for the provinces of Saskatchewan and Alberta. Although the water in these sub-basins is supplied by the South Saskatchewan River, its value is highly variable across sub-basins, partly due to differences in cropping practices, climate, soil type, and level of water applied to the crops. Taking a long-run accounting perspective (all resources paid for), value of irrigation water in crop production in Alberta ranged from $16.95 per dam3 in the Alberta portion of the SSRB to $24.90 per dam3 in the Oldman River sub-basin. In Saskatchewan, this value was $9.58 per dam3 in the southwest Saskatchewan region and $61.74 per dam3 in the Lake Diefenbaker Development Area (LDDA). Higher value in LDDA, relative to Alberta sub-basins, is explained, in part, by differences in irrigated crops mix between the two regions. One of the major limitations of this study is that value of water could not be estimated for individual crops, in part due to lack of data on water use levels.