Does Irrigation on Cotton Really Matter?

Agricultural production has been a major component, $52.4 billion dollars for 2014, in the Texas domestic economy.  Cotton production represents a large part of that ag production, some $3.93 billion dollars in 2014.  Irrigated cotton production comprises a significant portion of overall cotton production.  Irrigated cotton produces approximately 12 times more net revenue than does dryland production.  However the groundwater used for agricultural irrigation is a scarce resource and is becoming much more difficult to secure in Texas as the years go by. 

Since 2004 the Edwards Aquifer Authority (EAA) has been installing remotely monitored water meters and since that time a program named Voluntary Irrigation Suspension Program Option (VISPO) has been instituted in some counties which reside above  the Edwards Aquifer.  The VISPO program offers monetary enticements for landowners with water rights to participate in this program.  The program offers a stipulated “stand-by” payment as a “thank you for playing” gift to entice  landowner enrollment.  If there is a condition that results in the water level in stipulated water wells being at or below a stated amount then forbearance of irrigation water is called for by the EAA.  The bottom-line meaning of this is that those participating in the program are not allowed to use groundwater to irrigate.  If a call for forbearance does go out there is a corresponding stipulated payment for that forbearance.  The objective of this study is to determine if participation in the VISPO program leaves the participant in a better financial position than a traditional irrigated production system.