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Identifying Water Prices at Which Australian Farmers Will Exit Irrigation: Results of a Stated Preference Survey

Among the measures taken by the Australian government to address one of the worst droughts on record in the Murray-Darling Basin, exit package issues have rarely been investigated. A stated preference survey was designed to identify the range of water prices required for irrigators to sell all their water entitlements and leave the irrigation industry. Farmer participation responses are generally price elastic. There are large regional differences in price elasticities, but within a region there are few differences based on subgroups of farmers.