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Augmented Deficit Irrigation Economics <br />Net Profit on <br />Farm with <br />deficit irrig. <br />Lease of <br />saved CU by <br />M&I <br />Net Profit for <br />fully irrigated <br />increased by <br />X% <br />----Increases in water productivity (more Bu/ET") on farm with <br />deficit means more affordable to M&I <br />EXAMPLES FOR 15% INCREASE IN NET PROFIT; Lease rates $/af of CU <br />76% Yld at 64% ET (2010 research results); Lease rate at $234/af for $4 corn <br />($600/af for $6.50 corn) : Lease indexed to the price of corn <br />76% Yld at 76% ET (Linear); Lease rate at $351 /af for $4 corn ($900/af for <br />$6.50 corn) <br />80% Yld at 50% ET (Target); Lease rate at $151 /af for $4 corn ($387/af for <br />$6.50 corn) <br />----M&I gets the certainty/security for a firm future supply because <br />always farmer interest due to X% increase in net profits <br />