  This paper presents a farm level irrigation microsimulation model of the
southern Murray-Darling Basin. The model leverages detailed ABARES survey data
to estimate a series of input demand and output supply equations, derived from
a normalised quadratic profit function. The parameters from this estimation are
then used to simulate the impact on total cost, revenue and profit of a
hypothetical 30 per cent increase in the price of water. The model is still
under development, with several potential improvements suggested in the
conclusion. This is a working paper, provided for the purpose of receiving
feedback on the analytical approach to improve future iterations of the
microsimulation model.
