Agricultural groundwater conservation programs in the Phoenix Active Management Area: An economic assessment

The Arizona Groundwater Management Act (GMA) restricts the quantity of groundwater which farmers may use annually. The act also requires that a withdrawal fee be paid for each acre-foot of groundwater used. The impact of these policies on agricultural income and groundwater use in the Phoenix Active Management Area is estimated.;A linear programming model is used to simulate the typical farm’s response to GMA policy over the period from 1990 to 2025.;The impacts of two possible revisions of GMA policy are also considered. One simulation estimates the impacts resulting from the elimination of urban conservation programs. A second scenario considers elimination of agricultural conservation measures. Results indicate that the GMA agricultural conservation program will generate only small changes in income and groundwater use.