Groundwater Quality and Farm Income: What Have We Learned?

In response to public concerns, economists and other scientists have conducted research on agricultural chemicals and groundwater quality since the 1980s. The results of twenty-one studies conducted in various regions of the U.S. that examine the relationships between agrichemical treatments on crops, farm income, and groundwater quality both at the farm level and at the aggregate level are reviewed. Analysis of these studies indicates that across most regions, chemicals, and types of farms there is a trade-off between farm income and increased groundwater quality. In some situations, marginal improvements in groundwater quality can be achieved with limited reductions or even modest increases in farm income. However, most studies indicate that as reductions in agricultural chemical leaching to groundwater increase, reductions in farm income increase as well. Some issues for consideration in future research and extension projects in this arena are presented.