Farmer Adjustments to Higher Energy Prices: The Case of Pump Irrigators

Higher energy prices cause farmers using pump irrigation systems to consider several adjustment possibilities. These farmers are not generally able to pass higher energy input costs on to consumers, so higher energy prices will necessarily result in changes in the production process within the firm. These adjustment possibilities include shifting to more energy-efficient crops, reducing the amount of energy used per acre of a given crop, substituting other inputs for energy inputs, or selecting more energy-efficient farming practices and irrigation distribution systems. The potential for each of these possibilities is limited. Increased energy prices pose special challenges for the pump irrigators.