THE ADOPTION AND DIFFUSION OF LEVEL FIELDS AND BASINS
By: Anderson, David P.; Wilson, Paul N.; Thompson, Gary D.
Anderson, David P.; Wilson, Paul N.; Thompson, Gary D., THE ADOPTION AND DIFFUSION OF LEVEL FIELDS AND BASINS, Journal of Agricultural and Resource Economics, Volume 24, Issue 1, July 1999, Pages 186-203
Strategic investments in agriculture often are lumpy and irreversible, with significant impacts on operating and fixed costs. Leveling cotton fields to zero slope in central Arizona is a strategic decision made by relatively younger farmers who are farming fine-textured soils in irrigation districts with higher expected water costs. The diffusion of the technology across the region between 1968-89 appears to be both a function of institutional changes (e.g., the Groundwater Management Act of 1980, the Central Arizona Project) and the long-run expected price changes induced by these new policies.