Knowing the cost of a drainage or irrigation system provides only part of the
picture. To determine whether installing a system is a wise investment, the
potential benefits in terms of increased yield must also be known. Because a
large number of factors are involved and because the calculations can become
complex, a computer-based water management model entitled DRAINMOD has been
developed to help in comparing alternative systems. This section presents the
results obtained when the model was used to compare five different water
management options for an example farm. The predicted net return for each of the
options is compared to that for the present situation-poor quality surface
drainage with a ditch spacing of 300 feet.
To provide input data for the model, it was necessary to use some representative
weather and soil data and make certain other assumptions. Weather data from
Wilson, North Carolina, and soil data for a Rains sandy loam were used. It was
assumed that the land was continuously planted to corn, and certain other
assumptions were made as well. Some of the most important input data are
summarized in Table 4. Based on these data and assumptions, the model was used
to design the "optimum" system and predict the relative yield responses for
each alternative.
Each system component cost was determined using the procedure described in the
previous section. Production costs (costs for items such as seed, fertilizer,
chemicals, and equipment) were taken from corn production budgets prepared by an
Extension economist and adjusted for target yields(Table 5). The price of corn
was assumed to be $3.00 per bushel, and the maximum potential yield for the
site was assumed to be 175 bushels per acre. If no improvements were made on
this site, the average long-term corn yield would be about 80 bushels per acre.
Average yields for corn as predicted by the yield version of DRAINMOD using
weather data for a 30-year period are given in Tables 6 through 9. Table 6
presents the results for conventional subsurface drainage, Table 7 for
controlled subsurface drainage, Table 8 for combined subsurface drainage and
subirrigation, and Table 9 for conventional center-pivot overhead sprinkler
irrigation with conventional subsurface drainage. These predicted yields were
used to estimate the gross income for each alternative. Itemized costs and net
return or profit are also shown. Annual net return was calculated by subtracting
the estimated annual costs from the predicted annual income. The results for
each of the systems are analyzed in the following paragraphs.
Table 6 shows the influence of subsurface drain spacing and the quality of
surface drainage on net annual profit with a conventional subsurface drainage
system. The optimum tile spacing (that which results in maximum profit) is 75
feet for both good and fair surface drainage. The maximum profit, however,
occurs with fair surface drainage even though yields are slightly higher when
good surface drainage is provided.
This trend is fairly typical for North Carolina soils with good potential for
subsurface drainage. When good subsurface drainage cannot be or is not provided
(for example, with 300-foot spacing), providing good surface drainage becomes
more important. For soils with good potential for subsurface drainage, however,
it is usually more cost effective to provide the subsurface drainage than to
improve surface drainage. On the other hand, if the subsoil is fairly "tight"
(if it has poor potential for subsurface drainage), it is usually more cost
effective to improve the surface drainage.
Table 7 shows the Influence of drain spacing and the qualtiy of surface
drainage for controlled subsurface drainage. Again, maximum profit occurs at a
tile spacing of 75 feet for both fair and good surface drainage. As with the
conventional drainage system, yields are slightly higher with better surface
drainage, but the increased yield is not sufficient to offset the cost of
improving the surface drainage. Also, maximum profit is slightly higher with
conventional drainage than with controlled drainage, indicating that, based on
average yields, the increased yield with controlled drainage would not pay for
the cost of the control structure. This situation occurs because on this example
site three structures would be required to maintain the desired water table
level. If fewer structures could be used or if the cost of the structures were
reduced, controlled drainage might be a more economical alternative for this
site.
In general, soils with high drainable porosity show the greatest benefit from
controlled drainage, whereas soils with low drainable porosity show a greater
return from conventional drainage alone. Such is the case with this site. The
soil properties used for the model were those of a soil with medium drainable
porosity, and thus controlled drainage is not profitable for these specific
conditions.
One of the basic assumptions used in predicting yields with DRAINMOD is that
system management is kept at a minimum. For example, the model does not allow
the level of the control structure to be changed during temporary wet periods.
In a real situation, the farmer would likely lower the control structure to
increase drainage rates at such times. Thus yields could be from 2 to 5 percent
higher and net return could be increased by up to 10 percent if the drainage
system were carefully monitored and controlled.
Predicted yields and profit are shown in Table 8 for subirrigation and in
Table 9 for overhead (center-pivot) irrigation. It was assumed that improved
drainage would be necessary to accommodate overhead irrigation, and thus drain
spacings are shown for both systems. Maximum profit with a subirrigation system
occurs at a tile spacing of 50 feet for both fair and good surface drainage. As
in the two previous alternatives, the cost of improved surface drainage cannot
be recovered on this site when good subsurface drainage is provided. As the
quality of subsurface drainage decreases, however, surface drainage becomes more
important.
When drainage is improved on this poorly drained site, excellent corn yields
result. Thus a limited additional benefit can be realized from irrigation.
Compared to conventional drainage, subirrigation is only marginally more
profitable ($ 1.26 per acre per year) if a deep well is used as the water
source. The cost of the water source is the primary factor affecting profits
with irrigation. When a surface water supply is available, use of subirrigation
will boost profits by $29.08 per acre over conventional drainage (Table 8).
Regardless of the type of water supply used, subirrigation is considerably more
profitable on this site than the combination of conventional drainage with an
overhead (center-pivot) irrigation system. In fact, when the costs of providing
subsurface drainage, a water supply, and a center-pivot system are combined,
the profit with overhead irrigation is considerably less than for all other
options.
Intensive management-careful monitoring and control of the system-can affect
yields and profits with a subirrigation system just as it can with a controlled
drainage system, as discussed earlier. The benefit of intensive management
increases as the system drainage capacity decreases (that is, as the tile
spacing increases). At very close tile spacings, intensive management is not
necessary. At spacings close to or greater than the optimum, however, yields can
be increased 2 to 5 percent (and net return by up to 10 percent) with careful
management.
One additional point should be considered when comparing yields and profits for
the various alternatives. Production costs were adjusted to reflect average
targeted yields as predicted by DRAINMOD. This adjustment resulted in increased
nitrogen and harvesting costs with increased yield. Weather conditions that will
produce the highestyields even without irrigation normally occur in about one of
every five years. In the hope that the "good" year will be the year at hand,
many growers manage their operation in anticipation of the higher yield. That
is, their traditional management strategy is to use each year the seeding and
fertilization rates that are sufficient to produce the highest yield (175
bushels per acre), even though average yields will be less in most years when
water is the limiting factor.
Because production costs in this evaluation were adjusted for target yields,
the production costs for conventional subsurface drainage are underestimated
by about $10 per acre as compared to the irrigation alternatives if the farmer
uses this traditional strategy. Under these circumstances, the irrigation
alternatives are more attractive than the values shown by about $10 per acre as
compared to conventional subsurface drainage.
The maximum profit for each alternative is summarized in Figure 2. For the
conditions assumed, subirrigation would be the most profitable choice. However,
since the net profit with subirrigation is only slightly higher than that with
conventional subsurface drainage, one must ask: Is the risk of the additional
capital outlay justified by the increased profit? Only you can answer this
question after carefully considering your own situation.
Thus far, we have considered only long-term average yields and projected profit.
However, year-to-year variations in yield and profit could be of more importance
than long-term averages. The year-to-year variation in profit over a 10-year
period for each alternative is shown in Figure 3. In each case, the tile spacing
used was that which provided the highest long-term average profit for each
option. Notice that in some years (1972, for example) conventional subsurface
drainage provided the most profit. Sometimes rain occurs at just the right time
and in the right amount, so improved drainage or irrigation is not needed. Note
also that conventional subsurface drainage showed the least profit (most loss)
in other years (for example, in 1970).
Subirrigation, on the other hand, provided the most consistent year-to-year
profit; a net profit was predicted every year. This benefit is very important,
especially for growers who must meet annual financial obligations. Another way
of viewing this situation is that subirrigation provided more control over one
important factor that influences crop yield-that is, water. This control reduced
the risk of not making a profit and helped to stabilize farm income. From this
standpoint, subirrigation would be the most desirable option for this situation,
whereas subsurface drainage alone may be adequate from the standpoint of
long-term average profit.
When properly designed, subsurface drainage and subirrigation systems can often
increase yield reliability and net farm income significantly. However, soil and
site conditions vary from field to field, and the results reported here cannot
be applied to every situation. North Carolina has more than 2 million acres of
poorly drained cropland. Controlled drainage, subirrigation, or both would be
very profitable on about 1 million of these acres. On the other hand, controlled
drainage or subirrigation could be unprofitable on the other 1 million
acres.
Because subsurface drainage and subirrigation systems are expensive, careful
planning and design of these systems is crucial. Economic evaluation of all
alternatives is a very important part of the planning and design process. Be
sure to seek professional assistance when evaluating your water management needs.
Your county Agricultural Extension Service agent and Soil Conservation Service
personnel can help you evaluate the potential costs and benefits of water
management alternatives for your farm.