Value of water in irrigated agricultural production in Mexico

Abstract

The objective of the research was to quantify the contribution that water made to the value of agricultural production under the irrigation modality in Mexico during the period 1980-2017. For this purpose, based on the econometric methodology, a hyperbolic logarithmic or logarithmic reciprocal model was estimated, relevant for a production function when only one input is considered while the others remain constant. The variable explained was the natural logarithm of the value of irrigated agricultural production at the national level in constant pesos of 2013, the explanatory variable was the inverse of the water supplied for irrigation in cubic hectometers; both variables were I(0). It was found that the hydrological-administrative regions I, II, III, IV, VI, VII, and VIII -northern and Bajío states of the country- concentrate 89.4% of the total national irrigated area, hydrological-administrative regions that were highly benefited with federal investments in the irrigation districts and units. During the period analyzed, two structural changes were detected: 1) from 1980 to 1987; and 2) from 2009 to 2017. It was concluded that the contribution of water to the value of irrigated production registered a positive trend, it was $0.39 m^-3 in 1980, $1.92 m^-3 in 2017, $0.39 m^-3 for the period 1980-1987, $1.11 m^-3 for 1988-2008, $1.74 m^-3 for 2009-2017. Finally, during the period considered, the average contribution of water to the value of irrigated production in Mexico was $1.11 m^-3.