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Summary: Agriculture and ecosystems are increasingly competing for water. We propose an approach to assess the economic compensation standard required to release water from agricultural use to ecosystems while taking into account seasonal variability in river flow. First, we defined agricultural water shortage as the difference in water volume between agricultural demands and actual supply after maintaining environmental flows for ecosystems. Second, we developed a production loss model to establish the relationship between production losses and agricultural water shortages in view of seasonal variation in river discharge. Finally, we estimated the appropriate economic compensation for different irrigation stakeholders based on crop prices and production losses. A case study in the Yellow River Estuary, China, demonstrated that relatively stable economic compensation for irrigation processes can be defined based on the developed model, taking into account seasonal variations in river discharge and different levels of environmental flow. Annual economic compensation is not directly related to annual water shortage because of the temporal variability in river flow rate and environmental flow. Crops that have stable planting areas to guarantee food security should be selected as indicator crops in economic compensation assessments in the important grain production zone. Economic compensation may be implemented by creating funds to update water-saving measures in agricultural facilities. [ABSTRACT FROM AUTHOR]