The Economic Value of Irrigation in New Zealand
MAF Technical Paper No: 04/01
ISBN No: 0-478-07798-X
April 2004
Project team
Murray Doak, Project Leader, Senior Policy Analyst, Christchurch
Irene Parminter, Principal Adviser, Hamilton
Gerard Horgan, Senior Policy Analyst, Rotorua
Rachel Monk, Policy Analyst, Hastings
Graeme Elliot, Policy Analyst, Dunedin
Acknowledgements
The project team wishes to acknowledge the assistance of the following people:
The MAF Policy regional team members who contributed information and judgement to the project were; John Squire (Northland), Evelyn Hurley (Palmerston North), Chris Ward (Wellington), Chas Perry (Nelson) and Trish Burborough (Dunedin)
Chase O’Brien, Barry Voice and Vanessa Hooker (Statistics NZ), Richard Lynch (Treasury), Dougal Morrison and Matthew Hall (Ministry of Economic Development) and Geoff Butcher (Butcher and Associates) for assistance and comments on the methodology.
Sandy Scarrow, Ruth Underwood, Andrew Barber, Kirk Yates, Linda Hawes, and Dave Montgomery and for contribution of gross margin information.
Stuart Ford of the Agribusiness Group for peer review of the inputs and results.
Prof. Caroline Saunders and Anita Wreford of Lincoln University for modelling the impacts of output changes resulting from irrigation on prices and exports.
Disclaimer
The information contained in this report by the Ministry of Agriculture and Forestry is based upon the best information available to the Ministry at the time it was drawn up and all due care was exercised in its preparation. Because it is not possible to foresee all uses of this information or to predict all future developments and trends, any subsequent action in reliance on the accuracy of the information contained in it is the sole commercial decision of the user of the information and is taken at his/her own risk. Accordingly, the Ministry of Agriculture and Forestry disclaims any liability whatsoever is respect of any losses or damages arising out of the use of this information or in respect of any actions taken.
Requests for further copies should be directed to:
Publication Adviser
MAF Information Bureau
P O Box 2526
WELLINGTON
Telephone: (04) 894 0100
Facsimile: (04) 894 0720
This publication is also available on the MAF website at www.maf.govt.nz/publications
© Crown Copyright - Ministry of Agriculture and Forestry
Contents
- Foreword
- Executive Summary
- 1 Introduction
- 2 Background
- 3 What is irrigation?
- 4 The value of current irrigation to the New Zealand economy
- 4.1 Method
- 4.2 Irrigated area
- 4.3 Land use
- 4.4 Prices and costs
- 4.5 Results
- 4.6 Discussion
- 4.7 Other national economic impacts
- 5 Value of potential new irrigation to add to economic growth
- 5.1 Method
- 5.2 Area, land use and price assumptions
- 5.3 Results
- 5.4 Discussion
- 6 Impact of increases in output from irrigated land on product prices
- 6.1 Price impacts of current irrigated area
- 6.2 Price impacts of Irrigation Development
- 6.3 Summary
- 7 How does irrigation add to social wellbeing in the national interest?
- 8 How does irrigation impact on environmental outcomes?
- 8.1 Nutrients
- 8.2 Micro-organisms
- 8.3 Conservation
- 8.4 Net environmental result
- 9 The national interest in community irrigation scheme development
- 10 Further work
- 11 Conclusion
- Appendix 1: Methods for evaluating the National benefit from irrigation
- 1 Introduction
- 2 Valuation of Water
- 3 Calculating contribution of irrigation to GDP
- 4. The Impact of increased output on price
- 5 Measurement of the National benefit from irrigation
- References
- Appendix 2: Assumptions used in irrigation value calculations
- A2.1 Land use assumptions for current irrigated area
- A2.2 Land use change assumptions for future irrigated areas
- Appendix 3: Tables of land use assumptions and results
- Appendix 4: Summary of key social impacts studies
- A4.1 Assessing the social impacts of irrigation - A framework based on New Zealand cases
- A4.2 Social and economic impacts associated with irrigated land use change
- A4.3 Economic and social assessment of community irrigation projects
- A4.4 Water in New Zealand agriculture resilience and growth
- A4.5 Central Plains Water Enhancement: Economic and social impact of proposed irrigation schemes
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