Economic valuation and water productivity of wheat and barley crops in Hamadan province.

Water shortage is one of the main problems of Hamedan province. Meanwhile, the agricultural sector is more vulnerable than other economic sectors due to its high share in water consumption. Therefore, appropriate and efficient use of this limited resource is essential. The aim of this study was to determine the productivity and economic value of water in the agricultural sector and the revenue-generating potential of this resource in the production of two major crops of wheat and barley. For this purpose, farms in Hamadan province were selected by random sampling and were studied. The required information was prepared through field measurements, completing a questionnaire and interviewing farmers. The economic value of water was calculated using the final analysis method and the Cobb–Douglas production function. The average water productivity of wheat with two sprinkler and surface irrigation systems was determined as 1.24 and 1.03, respectively, and in barley as 1.55 and 1.02 kg / m3. Wheat and barley production elasticity was estimated to be 0.139 and 0.283, respectively. these amounts indicated that if water consumption increases by an average of one percent, the average wheat and barley production will increase 0.139 and 0.283, percent respectively. The economic value of water for two crops of wheat and barley was estimated at 2043 and 3755 Rials per cubic meter, respectively. Considering the cost of 496 Rials, water extraction from underground sources, it can be said that the economic value of water in the two crops studied is much higher than the costs incurred by farmers for its extraction. Therefore, by determining the economic value of water and receiving water prices, incentives can be directed towards more efficient water allocation and increased productivity.