USDA highlights irrigation pricing practices in Charts of Note

A recent Charts of Note feature from the USDA Economic Research Service spotlights how irrigation organizations price water deliveries — drawing from findings published in the February 2025 report, Irrigation Organizations: Water Measurement and Pricing. 

The chart shows the diversity in water pricing strategies across the country. While per acre assessments or taxes remain the most common pricing method, volumetric pricing — charging based on the amount of water delivered — is also widely used, either alone or in combination with per-acre fees. Each approach carries different implications for revenue generation and on-farm water conservation. 

In 2019: 

• 44% of organizations used only per-acre assessments or taxes, covering 35% of irrigated land. 

• 21% relied exclusively on volumetric pricing. 

• 24% used a hybrid of both methods. 

• 12% operated without generating revenue, instead relying on member labor. 

The data underscores how pricing models can influence water use behaviors, infrastructure funding and long-term conservation goals. Volumetric pricing, in particular, may incentivize farmers and ranchers to reduce water use, since costs are tied directly to consumption. 

📊 View the full chart on the USDA ERS website
📘 Read the full ERS report: Irrigation Organizations: Water Measurement and Pricing