BPBE

In Canada, freight rates on exports of grains and oilseeds from the prairie region have been regulated since 1897. Until the 1960s, the stability and assurance of these rates contributed to development of the prairie-based grains economy. However, in recent years, these regulated rates have become a significant subsidy for prairie farmers due to inflated costs of transportation. As a result, the issue of regulated freight rates for prairie grains and oilseeds has become a matter of intense debate, since they have the effect of raising the on-farm price of export grains. Crities of the regulated freight rates claim that they have actually inhibited diversification of economic activities in the prairie region because they increase the price of feed grain, a key input for the livestock industry. In this analysis, two quantitative models were used to estimate the farm and secondary level impacts of changing from subsidized to full compensatory rates for various grains. The analysis showed that loss of the subsidy would result in much reduced levels of farm income and consequent loss of secondary economic activities unless the subsidy was provided in some other form. Indexes of diversification were not significantly affected by changes in the freight rate structure. Thus, the hypothesis that statutory grain freight rates are the primary factor responsible for lack of diversification in the prairie economy is not supported. There exists a need for identifying factors that may impede the process of diversification of the regional economies.

In this study, value of water used for irrigation was estimated in the South Saskatchewan River Basin using the concept of producer surplus. The basin was divided into sub-basins for the provinces of Saskatchewan and Alberta. Although the water in these sub-basins is supplied by the South Saskatchewan River, its value is highly variable across sub-basins, partly due to differences in cropping practices, climate, soil type, and level of water applied to the crops. Taking a long-run accounting perspective (all resources paid for), value of irrigation water in crop production in Alberta ranged from $16.95 per dam 3 in the Alberta portion of the SSRB to $24.90 per dam 3 in the Oldman River sub-basin. In Saskatchewan, this value was $9.58 per dam 3 in the southwest Saskatchewan region and $61.74 per dam 3 in the Lake Diefenbaker Development Area (LDDA). Higher value in LDDA, relative to Alberta sub-basins, is explained, in part, by differences in irrigated crops mix between the two regions. One of the major limitations of this study is that value of water could not be estimated for individual crops, in part due to lack of data on water use levels.

Water demand characteristics of households in various-sized communities are estimated in this study using cross-section data for 50 communities located in southwestern Saskatchewan. Communities differed with respect to frequency of billing, as well as pricing structure; increasing block, decreasing block or uniform rate (flat rate, no charge). Seasonality of water demand was also identified. Response of consumers to a price change was less for those billed on a quarterly or tri-annual basis than for those who were billed on a monthly or annual basis. Results also suggest that an institution of increasing block pricing system would result in a decrease in water demand by 10 percent, and therefore, should be worthy of consideration as a potential measure for water conservation.

Irrigation development in Saskatchewan was initiated as an instrument to bring forth regional stability through drought proofing and diversification in the agricultural sector. This development has been surrounded by controversies. Particularly, some crit-

In parts of Saskatchewan, with higher levels of precipitation, waterlogging is a common problem, which has been recognized by Saskatchewan policy-makers by passing the Saskatcheuan Conser,uation and Development Act in 1949. Projects under this Act are supported by both public and private funds. An evaluation of these projects is needed to show their effectiveness both to policy-makers and to the public atlarge. Such analysis should encompass both social and private impacts resulting from these projects. Ten water control projects were examined in this study, involving three types of activities: agricultural drainage, flood control along with agricultural drainage, and backflood irrigation using water from agricultural drainage. Economic evaluation included both economic efficiency analysis and regional development benefits. A11 ten projects passed the economic efficiency test, since the benefit-cost ratio ranged from 1.3 to 4.4. Allprojects also created regional development benefits, since these projects contributed on average in the loca1 region 10.74 times the income for every dollar invested. Some projects created environmental issues, but such impacts were not included in this study because of lack of data. In general, projects that provided benefits beyond the dryland agricultural activities (flood control and backflood irrigation) were found to be superior on both economic efficiency and regional development benefits criteria. n Esutrr r Dans certaines parties de la Saskatchewan, vu les niveaux de pr6cipitations plus d1ev6s, l'engorgement est un probldme courant, que les d6cideurs de la Saskatchewan ont reconnu en adoptant la Conservation and Development Act en 1949. Les projets au titre de cette 1oi sont soutenus i la fois par les deniers publics et priv6s.

ABSTRAC1' Water abundance has led most North American societies to use water freely without priorizing its use. As water scarcity becomes reality in the southern part of Saskatchewan, planners and managers of water require information about the value of water in irrigation, as well as in alternative uses. In this study, the value of water to the producer in irrigation is developed both for the short and long run. The basis of this imputation is a derived demand function for water using linear programming. Water demand was bound to be inelastic at lower prices, and highly elastic at higher prices. The short-run value of water varied between $0.44 and $127.82 (1986 dollars) per acre-foot for different levels of product prices. However, the long-run value was estimated between zero and $1.59 per acre-foot of water. (KEY TERMS: value of water; irrigation water demand; Saskatchewan.)

ABSTRAC1' Water abundance has led most North American societies to use water freely without priorizing its use. As water scarcity becomes reality in the southern part of Saskatchewan, planners and managers of water require information about the value of water in irrigation, as well as in alternative uses. In this study, the value of water to the producer in irrigation is developed both for the short and long run. The basis of this imputation is a derived demand function for water using linear programming. Water demand was bound to be inelastic at lower prices, and highly elastic at higher prices. The short-run value of water varied between $0.44 and $127.82 (1986 dollars) per acre-foot for different levels of product prices. However, the long-run value was estimated between zero and $1.59 per acre-foot of water. (KEY TERMS: value of water; irrigation water demand; Saskatchewan.)

Adoption of mitigation measures to reduce greenhouse gas emissions may affect other members of the society, producing a situation of trade-offs. In this study, such a trade-off is has been analyzed using three aspects of the Canadian society: producers (farm level adopter), environment (through reduction in the GHG emissions),; and regional economy (including rest of the society through lost / gained economic activities). The nutrient management strategy involving the switching nitrogen fertilizer application from a combination of fall and spring application to a 100 percent spring application. Results suggest that the adoption of such a measure creates a 'win-win' situation, being both environmentally and economically desirable. Under the scenario, fertilizer expenditures decreased by $43 million (giving rise to an equivalent increase in farm income), GHG emissions (in CO2E) by 2.15 percent of the 2000 level of emissions, Canadian economy as a whole showed improvements, although on a regional basis the results were mixed.

Irrigation development may present trade-offs between economic and environmental quality. To assess this, a comparative analysis is undertaken of contributions of irrigation versus dryland production to greenhouse gas (GHG) emissions in two Canadian regions for the year 2000. This regional analysis was undertaken using three criteria-area, physical production, and economic value of production.