‘Overuse-charge’ agricultural water price mechanism in groundwater overdraft areas

The irrigation water price is an indispensable element for the modernization of agriculture and the realization of rural revitalization. As a pilot initiative for agricultural water price reform, Hebei Province has explored various effective patterns. This study analyzed 714 first-hand data points obtained from agricultural irrigation areas in Hebei Province. The ‘two lines and three grades’ water price policy is difficult to implement in practice. The ‘overuse-charge’ includes two levels of water use is standards, the water price and reward standards in each level are inconsistent, especially, actual irrigation water use is far more than Individual Allowable Water Volume (IAWV). Similarly, there is a negative relationship between irrigation water use and water fees at the critical point of IAWV, that is, the more water used, the less water fees are paid. The ‘one line and two grades’ water price policy is proposed. The water volume less than the irrigation quota should be purchased by the government or rewarded farmers; on the contrary, the water price should be increased. It is suggested to improve the installation of irrigation metering facilities, popularization of field water-saving technology and quota management in the groundwater water irrigation region. HIGHLIGHTS The price of agricultural water is the primary means to coordinate ecological and economic use of water.; Agricultural water price is an indispensable element for the modernization of agriculture.; It is crucial for the government to repurchase the agricultural water which could recover groundwater level.; Establishing an incentive mechanism can improve farmers’ enthusiasm to transfer surplus water to the government.;