1. Economics of Drip Irrigation: MAC Demonstration Project Russell Tronstad 520-621-2425 tronstad@ag.arizona.edu Dept. of Agricultural and Resource Economics

2. Engineering Efficiency OutputInput Engineering Eff. = Crop Yield Water Applied =

3. Economic Efficiency Value Output Value Input Econ. Eff. = Revenue( yield, quality ) Cost( system, water, fumigation fertilizer, mgmt., leaching, … ) fertilizer, mgmt., leaching, … )=

4. Economic Efficiency Economic = Value Output Value Input Value Input HighestValuedOutput Bundle of Resources Labor Water Machinery Fertilizer Land

5. Water Use Dynamics / Time

6. Flood Irrigation -- Laser Leveled Efficient?

7. Efficiency of SDI vs. Flood?

8. Comparison Values for SDI Ownership / Installation Costs (5 actual, 3 hypothetical configurations) Ownership / Installation Costs (5 actual, 3 hypothetical configurations) Annual Operating Costs Annual Operating Costs Water Use Water Use Yield / Revenue Impacts Yield / Revenue Impacts

9. 5 plots / 8 Different Systems BedIrrig.Installation Annualized Cost PlotConfig.Freq.Cost20-yr life10-yr life #180" drip bedhigh $2,050.00 $178.73 $278.53 #240" drip bed high $1,833.00 $159.81 $249.05 #380" drip bed low $1,947.00 $169.75 $264.53 #4Furrowfurrow-- -- -- #540" drip bed low $1,730.00 $150.83 $235.05 hypothetical mobile unit & furrow configurations #3M80" drip bed low $1,547.00 $134.87 $210.19 #4FFurrow4”/irrig------ #5M40" drip bed low $1,330.00 $115.96 $180.70 Broccoli: 6% discount rate

10. 5 plots / 8 Different Systems BedIrrig.Installation Annualized Cost PlotConfig.Freq.Cost20-yr life10-yr life #180" 3-linehigh $2,050.00 $178.73 $278.53 #280” 2-line high $1,833.00 $159.81 $249.05 #380" 3-line low $1,947.00 $169.75 $264.53 #4Furrowfurrow-- -- -- #580" 2-line low $1,730.00 $150.83 $235.05 hypothetical mobile unit & furrow configurations #3M80" 3-line low $1,547.00 $134.87 $210.19 #4FFurrow4”/irrig------ #5M80" 2-line low $1,330.00 $115.96 $180.70 Watermelons: 6% discount rate

11. Yield Differences BedIrrig.Yield% change PlotConfig.Freq.(ctn./ac)from furrow #180" drip bedhigh9057.5% #240" drip bed high 92610.0% #380" drip bed low9118.2% #4Furrowfurrow842-- #540" drip bed low 8622.4% hypothetical mobile unit configuration #3M80" drip bed low911 8.2% #4FFurrow4”/irrig.842-- #5M40" drip bed low8622.4% Broccoli, 2002-03:

12. Yield Differences BedIrrig. Yields /cwt. % change PlotConfig.Freq.SeededSeedlessfurrow #180" 3-linehigh 204 320 182% #280” 2-line high 169 256 128% #380" 3-line low 160 235 112% #4Furrowfurrow102 84 -- #580" 2-line low 160 142 62% hypothetical mobile unit configuration #3M80" 3-line low 160 160 112% #4FFurrow4”/irrig10284-- #5M80" 2-line low 235 142 62% Watermelons, 2003:

13. Water Use & Cost ($36/ac-ft) BedIrrig.Actual Water PlotConfig.Freq. Used (af:$/ac) #180" drip bedhigh1.83: $65.70 #240" drip bed high 1.78: $63.90 #380" drip bed low1.83: $65.70 #4Furrowfurrow1.88: $67.80 #540" drip bed low 1.78: $63.90 hypothetical mobile unit & furrow configurations #3M80" drip bed low 1.83: $65.70 #4Hfurrow4”/irrigation3.33: $120 #5M40" drip bed low 1.78: $63.90 Broccoli, 2002-03:

14. Water Use & Cost ($36/ac-ft) BedIrrig.Actual Water PlotConfig.Freq. Used (af:$/ac) #180" 3-linehigh2.47: $89.08 #280" 2-line high 2.25: $80.99 #380" 3-line low2.47: $89.08 #4Furrowfurrow2.35: $84.60 #580" 2-line low 2.25: $80.99 hypothetical mobile unit & furrow configurations #3M80" 3-line low 2.47: $89.08 #4FFurrow4”/irrig5.33: $192 #5M80" 2-line low 2.25: $80.99 Watermelons, 2003:

15. Return Difference ($/ac) from Furrow (actual): 20 yr. life of SDI, Broccoli BedIrrig. Price ($/carton) PlotConfig.Freq. $5.00$7.38$10.00 #180" drip bedhigh-$ 6.07$ 143.87$ 308.93 #240" drip bed high $ 58.39$ 258.31$ 181.83 #380" drip bed low$ 17.61$ 181.83$ 362.61 #4Furrowfurrow-- #540" drip bed low -$ 89.43-$ 41.83$ 10.57 hypothetical mobile unit & furrow configurations #3M80" drip bed low $ 32.49$ 196.71$ 377.49 #4FFurrow4” / irrig-$ 52.20-$ 52.20-$ 52.20 #5M40" drip bed low -$ 74.56-$ 26.96$ 25.44

16. Return Difference ($/ac) from Furrow (actual): 10 yr. life of SDI, : Broccoli BedIrrig. Price ($/carton) PlotConfig.Freq. $5.00$7.38$10.00 #180" drip bedhigh-$105.87 $ 44.07$ 209.13 #240" drip bed high -$ 30.85$ 169.07$ 389.15 #380" drip bed low-$ 77.17$ 87.05$ 267.83 #4Furrowfurrow-- #540" drip bed low -$ 173.65-$ 126.05-$ 73.65 hypothetical mobile unit & furrow configurations #3M80" drip bed low -$ 42.83$ 121.39$ 302.17 #4FFurrow4” / irrig-$ 52.20-$ 52.20-$ 52.20 #5M40" drip bed low -$ 139.30-$ 91.70-$ 39.30

17. Return Difference ($/ac) from Furrow (actual): 20 yr. life of SDI: Watermelons BedIrrig. Price ($/cwt.) PlotConfig.Freq. $5.00$7.78$10.50 #180" 3-linehigh$1,402$ 2,422$3,420 #280" 2-line high $ 981$ 1707$ 2,417 #380" 3-line low $ 834$ 1469$ 2,091 #4Furrowfurrow-- #580" 2-line low $ 294$ 624$ 947 hypothetical mobile unit & furrow configurations #3M80" 3-line low $ 849$ 1484$ 639 #4FFurrow4” / applic-$ 107-$ 107-$ 107 #5M40" 2-line low $ 309$ 639$ 962

18. Return Difference ($/ac) from #4F (same yields): 20 yr. life of SDI: Watermelons BedIrrig. Price ($/cwt.) PlotConfig.Freq. $5.00$7.78$10.50 #180" 3-linehigh-$ 21 -$ 21 -$ 21 #280" 2-line high -$ 2 -$ 2 -$ 2 #380" 3-line low -$ 12 -$ 12 -$ 12 #4Furrowfurrow$ 107 $ 107 $ 107 #580" 2-line low -$ 88 -$ 88 -$ 88 hypothetical mobile unit & furrow configurations #3M80" 3-line low $ 3 $ 3 $ 3 #4FFurrow4” / applic-- -- -- #5M40" 2-line low -$ 73 -$ 73 -$ 73

19. Break-Even Water Cost with Same Yield: #4F (4”/irrig): and 20 yr. drip life for Broccoli BedIrrig.All SDI 1/2 SDI PlotConfig.Freq. Costs on Broc.Costs on Broc #180" drip bedhigh $ 107.99$ 48.61 #240" drip bed high $ 97.31 $ 45.92 #380" drip bed low$ 102.02$ 45.62 #4Furrowfurrow #540" drip bed low $ 91.53$ 43.03 hypothetical mobile unit & furrow configurations #3M80" drip bed low $ 92.14$ 47.33 #4FFurrow4” / applic---- #5M40" drip bed low $ 81.96$ 44.68 costs same except water

20. Break-Even Water Cost with Same Yield: 4” per irrigation: and 10 yr. drip life for Broccoli BedIrrig.All SDI 1/2 SDI PlotConfig.Freq. Costs on Broc.Costs on Broc #180" drip bedhigh$ 174.30$ 81.76 #240" drip bed high$ 154.69$ 74.61 #380" drip bed low$ 165.00$ 77.11 #4Furrowfurrow #540" drip bed low $ 145.69$ 70.11 hypothetical mobile unit & furrow configurations #3M80" drip bed low $ 142.18$72.35 #4FFurrow4” / irrig---- #5M40" drip bed low $ 123.60$ 65.50 costs same except water

21. Break-Even Water Cost with Same Yields: 4” per irrigation: and 20 yr. drip life for Watermelons BedIrrig.All SDI 1/2 SDI PlotConfig.Freq. Costs on Wat.Costs on Wat. #180" 3-linehigh$ 43.46$ 12.16 #280”2-line high$ 36.58$ 10.64 #380" 3-line low$ 40.31$ 10.59 #4Furrowfurrow #580" 2-line low $ 64.54$ 40.06 hypothetical mobile unit & furrow configurations #3M80" 3-line low $ 35.10$ 11.49 #4FFurrow4” / irrig---- #5M80" 2-line low $ 59.71$ 40.88 costs same except water

22. Break-Even Water Cost with Same Yields: 4” per irrigation: and 10 yr. drip life for Watermelons BedIrrig.All SDI 1/2 SDI PlotConfig.Freq. Costs on Wat.Costs on Wat. #180" 3-linehigh$ 78.41$ 29.64 #280”2-line high$ 65.55$ 25.13 #380" 3-line low$ 73.51$ 27.19 #4Furrowfurrow #580" 2-line low $ 91.88$ 53.73 hypothetical mobile unit & furrow configurations #3M80" 3-line low $ 61.48$ 24.67 #4FFurrow4” / irrig---- #5M80" 2-line low $80.73$ 51.40 costs same except water

23. Value 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?

24. Key Considerations Tough to justify SDI on water savings alone in Central AZ -- two crops/yr. may help? Tough to justify SDI on water savings alone in Central AZ -- two crops/yr. may help? Yield or Price Enhancements -- is it marketable yield?? Yield or Price Enhancements -- is it marketable yield?? Actual vs. Hypothetical water use Actual vs. Hypothetical water use Time Horizon: 20, 10, 5 years? Time Horizon: 20, 10, 5 years?