Optimization of water procurement decisions in an irrigation district: the role of option contracts

Water supply instability is one of the main risks faced by irrigation districts and farmers. Water procurement decision optimisation is essential in order to increase supply reliability and reduce costs. Water markets, such as spot purchases or water supply option contracts, can make this decision process more flexible. We analyse the potential interest in an option contract for an irrigation district that has access to several water sources. We apply a stochastic recursive mathematical programming model to simulate the water procurement decisions of an irrigation district?s board operating in a context of water supply uncertainty in south-eastern Spain. We analyse what role different option contracts could play in securing its water supply. Results suggest that the irrigation district would be willing to accept the proposed option contract in most cases subject to realistic values of the option contract financial terms. Of nine different water sources, desalination and the option contract are the main substitutes, where the use of either depends on the contract parameters. The contract premium and optioned volume are the variables that have a greater impact on the irrigation district?s decisions. Key words: Segura Basin, stochastic recursive programming, water markets, water supply option contract, water supply risk.

Water stress thresholds for regulated deficit irrigation in pistachio trees

The response of "Kerman" pistachio trees budded on three different rootstocks (Pistacia terebinthus, Pista-cia atlantica and Pistacia integerrima) to regulated deficit irrigation (RDI) in shallow soils was studied for3 years. The trees were either fully irrigated (C treatment) or subjected to deficit irrigation during Stage IIof fruit growth with two water stress thresholds (T1 and T2). The irrigation scheduling for fully-irrigatedtrees and water-stressed trees was managed by means of midday stem water potential (?stem) measure-ments. The use of direct measurements of the water status allowed estimating accurately the irrigationrequirements for pistachio trees, with water reductions ranging from 46 to 205 mm in fully-irrigatedtrees. The combination of the ?stemuse and the RDI regime saved 43?70% in T1 and 48?73% in T2 ofwater compared to the calculated crop evapotranspiration (ETc) for fully irrigated treatment (C).Deficit irrigation during Stage II significantly reduced the vegetative growth of the trees. Yield and fruitquality were not affected by any irrigation regime, except during the first year of the study. Thus, theresults indicate that full irrigation scheduling and RDI can be achieved successfully using ?stemtool onpistachio trees growing in shallow soils. A ?stemthreshold of ?1.5 MPa during stage II (T1) was suggestedfor RDI scheduling, as it did not reduce the yield or the production value. However a ?stemthresholdof ?2.0 MPa (T2) resulted in a significant reduction and an extensive delay in the recovery of stomatalconductance (gl),with negative effects on long-term pistachio production.P. integerrima showed a weaker capacity of adaptation to the study conditions compared to P. atlanticaand P. terebinthus, having a tendency to get more stressed and to produce a lower quality crop.