Rural electrification and irrigation in the U.S. High Plains

The U.S. governmentʹs rural electrification program played a critical role in the development of the agricultural economy of the High Plains, a region characterized by low precipitation, extreme temperatures and recurring drought. Rural electric co-operatives and low-cost, government-supplied electricity made large-scale, groundwater-based irrigation farming both profitable and very productive. For many of the High Plains rural electric co-operatives, groundwater-based irrigation generates a very large share of their total electricity sales and operating revenues. Declining groundwater levels and rising irrigation energy costs, however, have caused significant reductions in total irrigated cropland. Many of the electric co-operatives will continue to be confronted with declining revenues unless electric rates are raised or government subsidies for the rural electrification program increase. This raises serious questions about the continued economic viability of the High Plains rural electrification industry, as well as about the future of the regionʹs agricultural economy.