In the South Platte system in Colorado, the actual installed well capacity is approximately sufficient to irrigate the entire area. This would appear to be an overinvestment in well capacity. However, results suggest that under current economic conditions the most reasonable groundwater pumping capacity is a total capacity capable of irrigating the available acreage with groundwater. This capacity maximizes the expected net benefits and also minimizes the variation in annual income: it reduces the variance to essentially zero. As pumping capacity is installed in a conjunctive use system, the value of flow forecasts is diminished. Poor forecasts are compensated for by pumping groundwater. -from Authors
Additional publication details
Conjunctive use of groundwater and surface water for irrigated agriculture: risk aversion ( South Platte, Colorado).