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Economics of Drip Irrigation: Economics of Drip Irrigation: MAC Demonstration ProjectMAC Demonstration Project
Russell Tronstad 520-621-2425
Dept. of Agricultural and Dept. of Agricultural and Resource EconomicsResource Economics
Engineering EfficiencyEngineering Efficiency
OutputOutput InputInput
Engineering Eff. =Engineering Eff. =
Crop YieldCrop Yield
Water AppliedWater Applied ==
Economic EfficiencyEconomic Efficiency
Value OutputValue Output Value InputValue Input
Econ. Eff. =Econ. Eff. =
Revenue(Revenue(yield, qualityyield, quality))
Cost(Cost(system, water, fumigationsystem, water, fumigation fertilizer, mgmt., leaching,fertilizer, mgmt., leaching, ……))
==
Economic EfficiencyEconomic Efficiency
Economic =Economic = Value OutputValue Output Value InputValue Input
HighestHighestValued Valued OutputOutput
Bundle of ResourcesBundle of Resources
Labor
Water
Machinery
Fertilizer
Land
Water Use Dynamics / TimeWater Use Dynamics / Time
Flood Irrigation -- Laser Leveled
Efficient?
Efficiency of SDI
vs. Flood?
Comparison Values for SDIComparison Values for SDI
• • Ownership / Installation Costs Ownership / Installation Costs (5 actual, 3 hypothetical (5 actual, 3 hypothetical
configurations)configurations)
• • Annual Operating CostsAnnual Operating Costs
• • Water UseWater Use
• • Yield / Revenue ImpactsYield / Revenue Impacts
5 plots / 8 Different Systems5 plots / 8 Different Systems
Bed Irrig. Installation Annualized CostPlot Config. Freq. Cost 20-yr life 10-yr life
#1 80" drip bed high $2,050.00 $178.73 $278.53
#2 40" drip bed high $1,833.00 $159.81 $249.05
#3 80" drip bed low $1,947.00 $169.75 $264.53
#4 Furrow furrow -- -- --
#5 40" drip bed low $1,730.00 $150.83 $235.05
hypothetical mobile unit & furrow configurations
#3M 80" drip bed low $1,547.00 $134.87 $210.19
#4F Furrow 4”/irrig -- -- --
#5M 40" drip bed low $1,330.00 $115.96 $180.70
Broccoli: 6% discount rate
5 plots / 8 Different Systems5 plots / 8 Different Systems
Bed Irrig. Installation Annualized Cost
Plot Config. Freq. Cost 20-yr life 10-yr life
#1 80" 3-line high $2,050.00 $178.73 $278.53
#2 80” 2-line high $1,833.00 $159.81 $249.05
#3 80" 3-line low $1,947.00 $169.75 $264.53
#4 Furrow furrow -- -- --
#5 80" 2-line low $1,730.00 $150.83 $235.05
hypothetical mobile unit & furrow configurations
#3M 80" 3-line low $1,547.00 $134.87 $210.19
#4F Furrow 4”/irrig -- -- --
#5M 80" 2-line low $1,330.00 $115.96 $180.70
Watermelons: 6% discount rate
Yield DifferencesYield Differences
Bed Irrig. Yield % changePlot Config. Freq. (ctn./ac) from furrow
#1 80" drip bed high 905 7.5%
#2 40" drip bed high 926 10.0%
#3 80" drip bed low 911 8.2%
#4 Furrow furrow 842 --
#5 40" drip bed low 862 2.4%
hypothetical mobile unit configuration
#3M 80" drip bed low 911 8.2%
#4F Furrow 4”/irrig. 842 --
#5M 40" drip bed low 862 2.4%
Broccoli, 2002-03:
Yield DifferencesYield Differences
Bed Irrig. Yields /cwt. % changePlot Config. Freq. Seeded Seedless furrow
#1 80" 3-line high 204 320 182%
#2 80” 2-line high 169 256 128%
#3 80" 3-line low 160 235 112%
#4 Furrow furrow 102 84 --
#5 80" 2-line low 160 142 62%
hypothetical mobile unit configuration
#3M 80" 3-line low 160 160 112%
#4F Furrow 4”/irrig 102 84 --
#5M 80" 2-line low 235 142 62%
Watermelons, 2003:
Water Use & Cost ($36/ac-ft)Water Use & Cost ($36/ac-ft)
Bed Irrig. Actual Water
Plot Config. Freq. Used (af:$/ac)
#1 80" drip bed high 1.83: $65.70
#2 40" drip bed high 1.78: $63.90
#3 80" drip bed low 1.83: $65.70
#4 Furrow furrow 1.88: $67.80
#5 40" drip bed low 1.78: $63.90
hypothetical mobile unit & furrow configurations
#3M 80" drip bed low 1.83: $65.70
#4H furrow 4”/irrigation 3.33: $120
#5M 40" drip bed low 1.78: $63.90
Broccoli, 2002-03:
Water Use & Cost ($36/ac-ft)Water Use & Cost ($36/ac-ft)
Bed Irrig. Actual Water
Plot Config. Freq. Used (af:$/ac)
#1 80" 3-line high 2.47: $89.08
#2 80" 2-line high 2.25: $80.99
#3 80" 3-line low 2.47: $89.08
#4 Furrow furrow 2.35: $84.60
#5 80" 2-line low 2.25: $80.99
hypothetical mobile unit & furrow configurations
#3M 80" 3-line low 2.47: $89.08
#4F Furrow 4”/irrig 5.33: $192
#5M 80" 2-line low 2.25: $80.99
Watermelons, 2003:
Return Difference ($/ac) from Furrow Return Difference ($/ac) from Furrow (actual): (actual): 20 yr. life20 yr. life of SDI, Broccoli of SDI, Broccoli
Bed Irrig. Price ($/carton)
Plot Config. Freq. $5.00 $7.38 $10.00
#1 80" drip bed high -$ 6.07 $ 143.87 $ 308.93
#2 40" drip bed high $ 58.39 $ 258.31 $ 181.83
#3 80" drip bed low $ 17.61 $ 181.83 $ 362.61
#4 Furrow furrow --
#5 40" drip bed low -$ 89.43 -$ 41.83 $ 10.57
hypothetical mobile unit & furrow configurations
#3M 80" drip bed low $ 32.49 $ 196.71 $ 377.49
#4F Furrow 4” / irrig -$ 52.20 -$ 52.20 -$ 52.20
#5M 40" drip bed low -$ 74.56 -$ 26.96 $ 25.44
Return Difference ($/ac) from Furrow Return Difference ($/ac) from Furrow (actual): (actual): 10 yr. life10 yr. life of SDI, : Broccoli of SDI, : Broccoli
Bed Irrig. Price ($/carton)
Plot Config. Freq. $5.00 $7.38 $10.00
#1 80" drip bed high -$105.87 $ 44.07 $ 209.13
#2 40" drip bed high -$ 30.85 $ 169.07 $ 389.15
#3 80" drip bed low -$ 77.17 $ 87.05 $ 267.83
#4 Furrow furrow --
#5 40" drip bed low -$ 173.65 -$ 126.05 -$ 73.65
hypothetical mobile unit & furrow configurations
#3M 80" drip bed low -$ 42.83 $ 121.39 $ 302.17
#4F Furrow 4” / irrig -$ 52.20 -$ 52.20 -$ 52.20
#5M 40" drip bed low -$ 139.30 -$ 91.70 -$ 39.30
Return Difference ($/ac) from Furrow Return Difference ($/ac) from Furrow (actual)(actual): : 20 yr. life20 yr. life of SDI: Watermelons of SDI: Watermelons
Bed Irrig. Price ($/cwt.)
Plot Config. Freq. $5.00 $7.78 $10.50
#1 80" 3-line high $1,402 $ 2,422 $3,420
#2 80" 2-line high $ 981 $ 1707 $ 2,417
#3 80" 3-line low $ 834 $ 1469 $ 2,091
#4 Furrow furrow --
#5 80" 2-line low $ 294 $ 624 $ 947
hypothetical mobile unit & furrow configurations
#3M 80" 3-line low $ 849 $ 1484 $ 639
#4F Furrow 4” / applic -$ 107 -$ 107 -$ 107
#5M 40" 2-line low $ 309 $ 639 $ 962
Return Difference ($/ac) from #4F Return Difference ($/ac) from #4F (same (same yields)yields): : 20 yr. life20 yr. life of SDI: Watermelons of SDI: Watermelons
Bed Irrig. Price ($/cwt.)
Plot Config. Freq. $5.00 $7.78 $10.50
#1 80" 3-line high -$ 21 -$ 21 -$ 21
#2 80" 2-line high -$ 2 -$ 2 -$ 2
#3 80" 3-line low -$ 12 -$ 12 -$ 12
#4 Furrow furrow $ 107 $ 107 $ 107
#5 80" 2-line low -$ 88 -$ 88 -$ 88
hypothetical mobile unit & furrow configurations
#3M 80" 3-line low $ 3 $ 3 $ 3
#4F Furrow 4” / applic -- -- --
#5M 40" 2-line low -$ 73 -$ 73 -$ 73
Break-Even Water Cost with Same Yield: Break-Even Water Cost with Same Yield: #4F#4F (4”/irrig): and (4”/irrig): and 20 20 yr. drip life for Broccoliyr. drip life for Broccoli
Bed Irrig. All SDI 1/2 SDI
Plot Config. Freq. Costs on Broc. Costs on Broc
#1 80" drip bed high $ 107.99 $ 48.61
#2 40" drip bed high $ 97.31 $ 45.92
#3 80" drip bed low $ 102.02 $ 45.62
#4 Furrow furrow
#5 40" drip bed low $ 91.53 $ 43.03 hypothetical mobile unit & furrow configurations
#3M 80" drip bed low $ 92.14 $ 47.33
#4F Furrow 4” / applic -- --
#5M 40" drip bed low $ 81.96 $ 44.68
costs same except water
Break-Even Water Cost with Same Yield: 4” per Break-Even Water Cost with Same Yield: 4” per irrigation: and irrigation: and 10 yr. drip life10 yr. drip life for Broccoli for Broccoli
Bed Irrig. All SDI 1/2 SDIPlot Config. Freq. Costs on Broc. Costs on Broc
#1 80" drip bed high $ 174.30 $ 81.76
#2 40" drip bed high $ 154.69 $ 74.61
#3 80" drip bed low $ 165.00 $ 77.11
#4 Furrow furrow
#5 40" drip bed low $ 145.69 $ 70.11 hypothetical mobile unit & furrow configurations
#3M 80" drip bed low $ 142.18 $72.35
#4F Furrow 4” / irrig -- --
#5M 40" drip bed low $ 123.60 $ 65.50
costs same except water
Break-Even Water Cost with Same Yields: Break-Even Water Cost with Same Yields: 4” per 4” per irrigationirrigation: and : and 20 yr. drip life20 yr. drip life for Watermelons for Watermelons
Bed Irrig. All SDI 1/2 SDIPlot Config. Freq. Costs on Wat. Costs on Wat.
#1 80" 3-line high $ 43.46 $ 12.16
#2 80”2-line high $ 36.58 $ 10.64
#3 80" 3-line low $ 40.31 $ 10.59
#4 Furrow furrow
#5 80" 2-line low $ 64.54 $ 40.06 hypothetical mobile unit & furrow configurations
#3M 80" 3-line low $ 35.10 $ 11.49
#4F Furrow 4” / irrig -- --
#5M 80" 2-line low $ 59.71 $ 40.88
costs same except water
Break-Even Water Cost with Same Yields: Break-Even Water Cost with Same Yields: 4” per 4” per irrigationirrigation: and : and 10 yr. drip life10 yr. drip life for Watermelons for Watermelons
Bed Irrig. All SDI 1/2 SDIPlot Config. Freq. Costs on Wat. Costs on Wat.
#1 80" 3-line high $ 78.41 $ 29.64
#2 80”2-line high $ 65.55 $ 25.13
#3 80" 3-line low $ 73.51 $ 27.19
#4 Furrow furrow
#5 80" 2-line low $ 91.88 $ 53.73 hypothetical mobile unit & furrow configurations
#3M 80" 3-line low $ 61.48 $ 24.67
#4F Furrow 4” / irrig -- --
#5M 80" 2-line low $80.73 $ 51.40
costs same except water
Value of Output for SDIValue of Output for SDI
• • Quality / Price Enhancements?Quality / Price Enhancements?
• • Yield Increase? Yield Increase?
• • Harvesting / Delivery Schedule?Harvesting / Delivery Schedule?
• • Ground Water Quality?Ground Water Quality?
Key ConsiderationsKey Considerations• • Tough to justify SDI on water Tough to justify SDI on water
savings alone in Central AZ -- savings alone in Central AZ -- two crops/yr. may help?two crops/yr. may help?
• • Yield or Price Enhancements -- Yield or Price Enhancements -- is it marketable yield?? is it marketable yield??
• • Actual vs. Hypothetical water Actual vs. Hypothetical water useuse
• • Time Horizon: 20, 10, 5 years?Time Horizon: 20, 10, 5 years?
