Journal Article

How Will Drought and Groundwater Depletion Affect Irrigated Farmland Values in the Tenth District?


Abstract: Irrigated farmland commands a premium relative to non-irrigated farmland due to capitalized infrastructure, access rights to groundwater, and superior yield potential. In the Tenth Federal Reserve District, this premium has been increasing over time and rising faster during droughts. Whether this premium will subsist in the long term, however, depends on existing groundwater reserves, local rates of aquifer replenishment, and continued efficiency gains in water use.

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Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Bulletin

Publication Date: 2026-06-24

Pages: 4