The impact of groundwater over-extraction on farmers, welfare: The case of wheat producers in Fasa county

Over-pumping of groundwater resources has caused some problems in recent decades leading to reduction of farmers, welfare. To determine its magnitude, factors affecting groundwater salinity were estimated first. Then production function of wheat was estimated and by calculating marginal productivity of each factor, it was found that marginal productivity of all factors except salinity was positive. Finally, the welfare function due to reduction of water level was estimated. The results indicated that farmers, welfare decreased significantly due to reduction of water level. In order to improve the situation some measures such as restricting production of water-intensive crops and exploitation of groundwater are suggested.