Measuring the Stochastic Monetary Benefits of Multiple Inlet Irrigation in Arkansas Rice Production

K. Bradley Watkins, Tatjana Hristovska and Merle M. Anders

No 119655, 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama from Southern Agricultural Economics Association

Abstract: Irrigation fuel costs represent a significant portion of rice production expenses. Multiple inlet (MI) irrigation represents a water saving alternative to conventional flood irrigation. This study uses simulation to calculate the range of monetary benefits to MI in rice production. Water savings from MI relative to conventional flood irrigation along with rice yields, rice prices, and prices for key production inputs (diesel and fertilizer) are simulated, and stochastic rice net returns above variable and fixed expenses are calculated for different pump lifts with and without MI. Monetary benefits to MI are measured as the difference in net returns with and without MI. The results indicate MI monetary benefits depend greatly on pump lift and the presence or absence of a yield increase. Monetary benefits to MI increase as pump lifts become larger, and relatively small increases in yield resulting from MI irrigation can greatly enhance its payoff.

Keywords: Farm; Management (search for similar items in EconPapers)
Pages: 23
Date: 2012-01
New Economics Papers: this item is included in nep-agr and nep-cmp
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea12:119655

DOI: 10.22004/ag.econ.119655

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