A linear programming model was developed to assess the impact of different water prices on cultivated areas, irrigation water demand, net income and optimal cropping pattern in the Northern Jordan Valley (NJV). The results reveal that the price for irrigation water does not reflect any elasticity in the range of water prices between 0.01 and 0.06 JD/M3 indicating constant real economic water price of 0.06 JD/M3. The change in cultivated areas as well as water demand (reduction) starts at water price 0.07 JD/M3. The expected reductions under optimal cropping patterns are 5%, 24%, and 60% for cultivated area and 4.7%, 18.9%, and 31% for water demand with water prices at 0.07, 0.1, and 0.16 JD/M3, respectively. Significant reductions in net incomes are resulted with increasing water prices over current average water price of 0.025 JD/M3. The expected reductions in net incomes are 33.6%, 53.8%, and 81.4% at water prices 0.07, 0.1, and 0.16 JD/M3, respectively. This result reflects the low land profitability as a result of low land productivity and/or low farm gate sale prices for most crops grown in NJV. The study also shows the inconsistency in quantity of water supplied and water demanded, leading to unbalanced water budget on monthly level and inconsequence, a noticeable waste in the quantity of available water during winter months, although there is a net surplus of water over the year. While the findings of this research reveal that a water price in the range of 0.07–0.1 JD/M3 does not significantly influence the farmers' socio-economic parameters in the NJV, it may help reach the stated goal of saving water especially when monthly distributions of irrigation water are based on real crops water demands and actual cropping patterns.
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