Probability of Irrigated Corn Being Profitable in a Humid Region

Christopher Boyer, James Larson (), Roland Roberts, Angela T. McClure, Donald D. Tyler and S. Aaron Smith

No 162470, 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas from Southern Agricultural Economics Association

Abstract: We used Monte Carlo simulation to evaluate the probability of the net present value (NPV) being positive for investing in irrigation for corn production in Tennessee. The probability of NPV>0 ranged from 78-89% for a 200-acre field using 1994-2013 prices, and 87-99% for a 125-acre field using 2006-2013 prices.

Keywords: Farm Management; Production Economics (search for similar items in EconPapers)
Date: 2014-01-16
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea14:162470

DOI: 10.22004/ag.econ.162470

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