Economic Footprint of Alberta's Irrigation Districts: An Economic Impact Analysis

ABSTRACT Irrigation development can be an effective economic force for agricultural production, regional development and urban and rural community development. This study estimated the societal economic footprint of the Irrigation Districts on the economy in Alberta, Canada, via a variety of economic impact analysis models. The analysis indicates that producers, agricultural and non‐agricultural industries and communities benefit (either directly or indirectly) from irrigation development and related activities. These impacts result from the direct use of irrigation water for crop and livestock production, whereas other impacts are related to irrigation infrastructure (reservoirs and canals) that provides water for municipalities, food processing industries, recreation and wildlife habitat development. Irrigation Districts' direct annual contribution to Alberta's agri‐food gross domestic product (GDP), a traditional measure of economic growth, was about $1 billion. This contribution increased, through indirect and induced impacts, to $5.4 billion for the provincial GDP—about 5 times greater than the direct contribution. About 81% of the GDP generated by the Irrigation Districts accrued to the province, and about 19% to the irrigation producers. This study revealed that irrigation development is a beneficial economic strategy for the province, irrigation producers, food processing industries and sustainable community development. This study also demonstrated that economically successful irrigation projects should develop linkages between irrigation producers and regional food processing industries.