Kent Kovacs, an associate professor of accounting, economics and finance at UA Little Rock, has received a nearly $750,000 grant from the National Science Foundation’s Division of Research, Innovation, Synergies and Education to study how farmers’ risk preferences impact water use during droughts.
The $745,594, three-year project will integrate economic, hydrological and social science models to examine how farmers make irrigation decisions, particularly in groundwater-dependent agricultural systems like the Lower Mississippi River Basin. The research aims to help policymakers and water resource managers develop strategies for sustainable water use amid increasing climate challenges.
The grant will also support education and outreach initiatives, including curriculum development and student training, with an emphasis on engaging non-traditional students in water resource management research.
A press release from the university stated that agriculture is one of the largest consumers of water, and droughts can severely impact crop production. Kovacs’ project aims to determine how the risk preferences of farmers affect their response to drought: either by taking more conservative water management approaches or if economic pressures lead to faster depletion of groundwater resources.
The study will use surveys of farmers to measure their risk preferences and incorporate the data into economic and hydrological models. These models will simulate how irrigation decisions change over time, particularly during prolonged droughts, and predict whether farmers will adapt to drier conditions or overuse aquifers, potentially necessitating future public policy interventions.
“If our models suggest a rapid decline of aquifer resources, it may indicate the need for policy changes — whether through water use regulations, incentives or conservation programs,” Kovacs said in the release. “Billions of dollars are invested in irrigated crop agriculture in Arkansas, making it the state’s second-highest revenue-generating agricultural activity after poultry. Understanding how irrigated farming impacts our goods and services from water resources is crucial for the livelihoods of Arkansans and the future of our state’s economy.”
Kovacs is collaborating with co-principal investigators Kevin Befus, associate professor of geosciences at the University of Arkansas, Mike Daniels, professor and extension soil and water conservation scientist, and John Pennington, water quality educator, from the University of Arkansas System Division of Agriculture’s Cooperative Extension Service.
The project will include three stakeholder workshops with farmers, policymakers, researchers, businesses and state and federal agencies.
“This grant is an incredible opportunity to address a complex societal challenge — ensuring sustainable water use in agriculture,” Kovacs said in the releaase. “No single discipline can solve this problem alone. We need interdisciplinary teams that combine economic modeling with hydrological data to understand how farmers respond to risk and changing water availability.”
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