Irrigation water value at small-scale schemes : evidence from the North West Province, South Africa

Abstract

Insight into the value of water is essential to support policy decision making about investments in the water sector, efficient allocation of water and water pricing. However, information on irrigation water values at small-scale schemes is scarce and in general little attention is paid to the determinants of these values. In this study values are calculated for small-scale irrigation schemes in the North West Province of South Africa, using the residual imputation method. An average water value of US$0.188/m3, in line with expectations for vegetable crops, was found. Furthermore, the crop choice and the irrigation scheme design and institutional setting were shown to significantly influence the water value, whilst individual characteristics of farmers proved to be less important.