Farm consolidation is often attributed to the possession of unique resources that increase productivity
and reduce production risk. Water rights are an example of such a resource, increasing revenue
generating potential while mitigating production risk. Using administrative groundwater records
from Kansas spanning 1990–2021, we evaluate how groundwater rights influence correspondent survival
and consolidation. Flexible parametric survival models indicate that correspondents holding
larger and more senior groundwater rights experience lower hazards of exit. A 100 acre foot increase
in groundwater allocation reduces the hazard of exit by 1.98%, while a ten-year increase in water
right seniority reduces the hazard by 3.87%. Consistent with these survival patterns, groundwater
ownership has become increasingly concentrated through time, with the top 10% of correspondents
now controlling 38% of water rights and 55% of authorized groundwater allocation. These findings
suggest groundwater rights confer a competitive advantage that contributes to consolidation
dynamics.
